Finally sometime back, I have completed installing Oracle Enterprise Linux on VMWare server. The installation is quite simple and straight forward. I just followed the steps given by Frederik (Frikkie) Visser in http://startoracle.com/2007/09/30/so-you-want-to-play-with-oracle-11gs-rac-heres-how/ . It is an excellent article that tells you step by step not only how to install linux on VMWare but also configuring RAC. A must read for a DBA. Thanks Frikkie.
My first reaction to OEL is, it is bulky and a bit slow. But I have allocated only 800 MB or memory to it. May be I should throw more memory to it and see how it behaves.
My next step would be to download Oracle 11g for Linux ans start installing it.