This method has been tested on VMWARE Fusion 8 as well as 10. Full credit to dada78641 and poentaEosei. My Windows 95 version of this guide can be found here.

On a default Windows 98 install you will find you have no sound:

The first thing to do is to shut the virtual machine down. Open up the  folder where the virtual machine is stored. Right click the Virtual  Machine and click "Show package contents"

Within this folder will be a file called <machine name>.vmx - right click this file and edit it with a text editor. I used BBEdit in this example.

Add the following line to the vmx file:

sound.virtualDev = "es1371"

Now start the virtual machine (cancel any install hardware prompts) and install the Creative ENSONIQ Audio software from the creative website or here from

Reboot and you will have sound!