1. How do I install Fedora OS in a VMware virtual machine?
2. I don't have IIS (win XP home). Do I need it if I'm going to use VMware server (to configure it)?
3. Is there a set of tools that I can install to configure VMware server WITHOUT IIS?
>How do I install Fedora OS in a VMware virtual machine?
Same way you would install Fedora on a regular machine. After you've set up the virtual machine so that its optical drive points to the installation image (either the physical drive in your computer if you burned the disk, or the image that you downloaded), simply start the machine and it should boot the Fedora installation. Simply erase everything (remember, this is a virtual hard disk, so you can do whatever you want), and install it.
>Is there a set of tools that I can install to configure VMware server WITHOUT IIS?
Yes. VMWare Server can be configured (i.e. creating new virtual machines, changing settings, etc.) with the VMWare Server Console application. VMWare distributes this in a separate package, so make sure to download the VMWare Server Windows Client package.