I currently have a OS X Snow Leopard installation and Windows 7 as a virtual machine on VMware Fusion 2.0. Has anyone tried to upgrade to Lion with a similar setup? Are there any problems or compatibility issues?
Here is your answer to that:
No, it is not supported.
You need to purchase an upgrade to VMware Fusion 3.1.3. VMware Fusion 2.0 does not support Windows 7 as a virtual machine, and does not support Lion as a host. Period.