Creating VM guest on Vsphere 4.1 within Workstation 7

I have successfully installed 2 Vsphere hosts within Workstation 7. However, when I tried to create a guest within the host I receive an error "Host CPU is incompatible with the virtual machine's requirements at CPUID level 0x800000001'edx'....Mismatch detected for these features: Longmode: required when a virtual machine is configured for a 64 bitguest OS. For systems with Intel CPU, enabling VT in the BIOS is required for long mode support".

I have made sure that the processor on the host is Intel VT-x or AMD-V enable. Also, on the guest, I went to edit settings---options---CPU/MMU Virtualization, enable Use Intel VT-x/AMD-V for instruction set virtualization and software for MMU virtualization.

Can I create a guest within Vsphere 4.1 within Workstation 7? If so, what should I do to avoid the error mentioned above?

Thanks