Few days ago，I opened the Genesys demo VM by VMware Server 1.0.4 and got an error like this：
"Configuration file was created by a VMware product with more features than this version" may be a correct statement, The VM image was created by a higher version VM product--VMware WorkStation6.5.
Because of this, you can use a simple hack to make the new VMs work with older version of VMware Server: simply change the hardware version back.
Here's how you do it:
1) Fix the VM configuation file
Go to the directory with all the files for your VM (V:indiana in my example), and edit the VM configuration file - the one with .vmx extension.
Change this line (should be close to the top of the file):
virtualHW.version = "6″
to this
virtualHW.version = "4″
2) Fix the VM disk configuration file
In exactly the same manner, fix the virtual machine disk file (.vmdk one:
ddb.virtualHWVersion = "6″
to look like this:
ddb.virtualHWVersion = "4″
That's all you need! After these two quick fixes your VM will be happily recognized by VMware Server 1.0.4. Enjoy!