For 32bit VMs it should not be needed but it does not harm. The virtualization option has to be set via Workstation GUI in the "Virtual Machine Settings" or you can change your VMX file. monitor.virtual_exec = "hardware" will result in a log message of:
HV Settings: virtual exec = 'hardware'
This should result in a lower CPU usage for your host and a faster execution for your guest/VM.
If this does not help, please deactivate 3D support for this VM. Either via Workstation-GUI or change the setting in the VMX file to:
mks.enable3d = "false"