When you configure host-only networking, Workstation Player creates a virtual private network (VPN) connection between the virtual machine and the host system.
A VPN is typically not visible outside the host system. Multiple virtual machines configured with host-only networking on the same host system are on the same network. The VMware DHCP server provides addresses on the network.
If you install the proper routing or proxy software on the host system, you can establish a connection between the host virtual network adapter and a physical network adapter on the host system. With this configuration, you can connect the virtual machine to a Token Ring or other non-Ethernet network.
On Windows host systems, you can use host-only networking in combination with the Internet connection sharing feature in Windows. With this combination, the virtual machine can use the dial-up networking adapter on the host system or another connection to the Internet. See the Windows documentation for more information on Internet connection sharing.