Sorry, I'm confused about the use of VMWare.... You have 2 PC's, the core and the m/d. I assume you used the kick-start to setup Pluto on the Core, right? So, it's just a vanilla core, and it created a network boot image for the other PC, which is now booting over the net. So the M/D too is also vanilla Pluto Linux, right? Where is VMWare running? Can you explain the configuration?
The M/D at the moment always boots up with 800x600 resolution. It's one of the more pressing things on our todo list to fix that so you can pick the correct resolution, but at the moment you have to alter the XConfig manually.