I got it solved.
It turned out to be missing Media Feature Pack for Windows 7 N. after looking in to C:\ProgramData\VMware\VMware Blast\Blast-worker.log (Thank you Andy) I have noticed errors like this:
2013-11-25 15:41:57,114 [DEBUG] 0x00000220 audio::Driver::Driver: Windows Media Foundation is available.
2013-11-25 15:41:57,114 [ERROR] 0x00000220 audio::MediaFoundation::Load: Unable to load mfplat.dll.
2013-11-25 15:41:57,114 [WARN ] 0x00000220 audio::Aac::Aac: Unable to load the Media Foundation library.
After getting the: Windows6.1-KB968211-x64-RefreshPkg installed it worked like a charm.
Thank you.
ps: It looks like the problem is due to Windows 7 N not having installed the Media Feature Pack out of the gate.
