VMware Fusion Disk Usage

The disk images for the operating systems are sparse, i.e. they expand as necessary. They unfortunately do not shrink automatically when you delete data.

For a windows image you have to install the VMware tools to shrink the disk.
VMware guide
http://www.vmware.com/support/ws5/doc/ws_disk_shrink.html

The VMware Tools are installed by: Start your virtual Operating system -> Move mouse to the top of the screen and select 'Virtual Machine' -> 'Install VMware Tools'

VMware Tools location
C:\Program Files\VMware\VMware Tools\VMwareControlPanel