I've been using a guest kernel repository by one of the VMWare users that rebuilds the std CentOS/RedHat kernels with HZ=100 and it's been great, chopped massive amounts off my CPU usage on the host.
Now with RedHat 5.1 this is not needed anymore see this post for a bit of a graph on the impact and the background. The short of it is, simply append divider=10 to your guest kernel boot parameters and enjoy a much happier host. I found that time keeping also becomes more predictable in the guest.

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