Thank you very much for the help. Seems like I got it working somewhat... at least past the stage where I was. I find getting an internet connection on my W7 machine a little finicky though.
I have my Server running DNS and DHCP. Did all the setup for the DHCP, and disabled DHCP on VMWare. Set IP on W7 machine to dynamic and everything was working great. The DHCP leased the first address in the scope to W7 (192.168.227.128) and I had internet connection on both machines.
I just installed SQL server one for SCCM and one for WSUS, installed windows updates, and allowed a couple port in the inbound firewall rules. Restarted the Server and now it has connection but the W7 doesn't. I restarted the W7 but still no luck. According to the DHCP menu, the W7 machine is still being leased the 192.168.227.128 IP, and I can ping the DNS from the W7, so I am not sure what is going on.