I have the same problem on a physical machine at home.
Usplash loads until the bar is filled, and then the booting stops. If I press 
Alt-F7 Xorg begins to load, it does not load in the background while I wait for 
usplash to finish.
So this is not a problem with Vmware!
On the vmware image I had "upstart" running, on the physical machine I first 
still had the old "init" system.

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edgy eft usplash does not switch to kdm
https://launchpad.net/bugs/63541

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