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VMware Server excesive memory usage

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I am running an intel server with dual quad/core zeon procs, 32GB RAM, and about 3TB RAID 5.

My host OS if FC7 fully patched and Im running VMware Server latest version.

When I start up the OS with the vmware serivce running its using about 1.5GB RAM.

The problem is as soon as I fire up a guest OS W2K3Ent for example it shoots up to 20+GB RAM used. It seems to use less if I allocate the disk space upfront when I build my guest VM, but even that is 10GB. Ive got the guest VMs set to the recommended memory settings (W2K3 384MB).

Something is seriously wrong.


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