Hey Nance:
I actually got it to join VLAN1 using the method you describe. The problem was jumbo packet settings on the host. They have to be manually set to 9000 on both en0 (LAN1) and vlan0 (VLAN1) network interfaces.
New problem is that host/guest cannot be firewalled off from one another despite my best attempts (and I'm no nube). Also, Fusion seems to freeze-up the VM's GUI about once every 24 hours. One problem at a time though.