Unless you really know what you're doing, you probably shouldn't be using Promiscuous mode in VMware. I'm betting that is at least part of the problem. Promiscuous mode is typically only used to monitor/sniff network traffic.
I used this once when we had a network issue to allow Wireshark to analyze the traffic. It's remained enabled after that but I guess it's time to disable it. Although, I'm leaning to your idea - it's probably not promiscuous mode that causes the error.
I found a setting in the wireless controller - Broadcast Forwarding, which was set to enabled. I just set it to disabled and enabled multicast and it actually looks as though it doesn't flood the m0n0 now. Too soon to say for sure yet, but it looks good. Filesystem is at 89% and doesn't look like it's increasing. I'll post back when 24 hours have passed when I know if it's actually working for real.