"A Windows 2000 guest operating system with Service Pack 3 installed may fail to boot with the following error: 'The Logon User Interface DLL msgina.dll failed to load.'

Microsoft has confirmed that this is a problem in these Microsoft products:

Microsoft Windows 2000 Advanced Server Service Pack 3
Microsoft Windows 2000 Server Service Pack 3
Microsoft Windows 2000 Professional Service Pack 3
Windows 2000 Service Pack 4 solves this problem, and VMware recommends that you upgrade your Windows 2000 guest operating systems to Service Pack 4.

If you cannot upgrade your guest operating system, a supported fix is available from Microsoft. Please refer to: Microsoft Knowledge Base Article - 329316. 

If your guest operating system does not boot, try the following workaround to allow you to boot. This workaround replaces the Service Pack 3 msgina.dll with the originally supplied msgina.dll on the Windows 2000 installation CD.

Perform the following steps to extract and replace msgina.dll:

Insert the Windows 2000 installation CD-ROM into the CD-ROM drive.
Boot into setup using the CD-ROM.
Select emergency recovery console.
Change to the CD-ROM drive.
Change to the i386 directory in CD-ROM drive.
In a command prompt, type the following command:
"expand msgina.dl_ C:\WINNT\system32\msgina.dll" (minus the quotes)
(NOTE: Change the destination drive letter if \WINNT is not in the default location.)
Reboot the virtual machine." 
 

I also found an article that mentioned that this problem was fixed by installing SP4 for W2K but I couldn't confirm in in anything else that I read. YMMV