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UPDATE: I did not realize that the host OS was running a 2K3 Server (64 bit). Even when I loaded VBP on the host outside of VMWare and put focus in the output window I saw a rise in the CPU and it held until the focus left. I tested this on a test machine with 2K3 Server 32 bit and did not see the CPU spike. We have since removed the 64 bit version and reinstalled the 32 bit 2K3 Server and everything works fine.
So bottom line is you may want to review the 2K3 Server 64 bit edition.
Thanks
Tom
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