This isn't my work. I found the fix on a cached page of the old forum, but since I couldn't find it here, figured I would post to help people in the future:
1. Install VMTools.
Lots of threads on this. I simply did a "apt-get open-vm-tools"
2. modify xorg.conf
2a. "kate /etc/X11/xorg.conf"
2b. Find the section called 'Graphics device section' and change the code to this:
Identifier "VESA Framebuffer"
3. reboot, startx, and wait a second and it should resize perfectly.