Mocca32,
If you downloaded the installation form the microsoft site, then you downloaded a DVD image.
The extension of the file should be ".iso". Now if you want to install this image of windows 7 in a vmware pc.
The only thing you need to do is associate the iso file with the dvd/cd player of your vmware machine.
And boot the vmware machine from your virtual cd/dvd player. And the installation of windows 7 will kick off.
Kind Regards
DFt
IM me