Welcome to the Community,
some thoughts:
did you set the VLAN-ID on the virtual port group too? This should only be done with the physical port configured as a trunk port!
for Fast Ethernet you may need to set a fixed speed and duplex (on both sides), because Autosensing may not work properly.
André
You may also want to take a look at http://kb.vmware.com/kb/1004127 for an example switch port configuration.