I added the following reg entry to the client machines and it fixed the vmware client 5.5. Now runs OK in IE with patch KB3161608 installed on the client machines.  Connected to the minimum supported key length being changed by MS:

[HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\SecurityProviders\SCHANNEL\KeyExchangeAlgorithms\Diffie-Hellman]
“ClientMinKeyBitLength”=dword:00000200