When you invoke the VMware Tools installation via the vSphere Client, you may encounter the error “A general system error occurred: Internal error“.
One thing to check is that the VM shell has the correct operating system selected for the guest operating system type. For example, a setting of “Other (32-bit)” will cause the error since VMware cannot determine the correct version of the tools to install in the guest operating system because the flavor of guest operating system is unknown (ie. Windows or Linux).
Other causes for this error can be found at VMware KB Article 1004718:
The virtual machine has CD-ROM configured.
The windows.iso is present under the /vmimages/tools-iso/ folder.
The virtual machine is powered on.
The correct guest operating system selected. For example, if the guest operating system is Windows 200, ensure you have chosen Windows 2000 and not Other.