Are you running the 2.0 Fusion beta? If so, you have debugging enabled and that slows it waaaay down.
Do you have enough RAM to give the VM 1GB and leave enough for your host? You should have at least 2GB on the host to allocate 1GB to the guest.
Do you really need 2 vcpus in the guest? Do you have enough CPUs on the host to keep it running if the guest is taking two?
I'm guessing you're over-commiting the RAM and/or CPUs. Reduce your VM's settings to something reasonable for your machine. 99% of the time, you do NOT need 2 vcpus in the VM (typically it's better to let the VM have one core and the host the other core in a dual-core machine).
Mike