avoelp wrote:
About 1 1/2 years ago I created a Windows XP Mode machine in MS Virtual PC which I then imported into VMWare Player.
You say you imported it and according to the vmware.log file it is still opening 'C:\Program Files\Windows XP Mode\Windows XP Mode base.vhd' file before it opens the "E:\Virtual Machines\Windows XP Mode\Windows XP Mode.vmdk" file. So it appears this is in essence a linked clone and that it probably why you cannot use the Shrink function from VMware Tools.
Originally I thought you had create a separate Virtual Machine no longer dependent on Microsoft's "Windows XP Mode base.vhd" file however that does not appear to be the case after reading the vmware.log file.