VMWare player v3.x does create VM's...at least I was able to create 8 of them for a test I wanted to do.
Actually if you have the installation discs or iso's of those discs it is actually a breeze creating a new VM with VMWare Player. It recognizes the Windows version you want to install and adjusts some VMWare settings accordingly. Those settings are a very good starting point, making it really, really easy.
To be honest, I was busy creating VM's in VMWare Server and that gave me a lot of problems, especially with Windows 7 VM's. After spending/losing 3 days, I noticed the option to create VM's in VMWare Player and what took me three days to complete, was now done in 4 hours.