Workstation

Let's edit the Virtual Machine settings.

Let's change the CD/DVD settings so that no media is presented to our Virtual Machine when we deploy it next time.  Clear the checkbox for 'Connect at power on', and click the radio button for 'Use physical drive'.

For the Floppy setting, clear the setting for 'Connect at power on', and click the radio button for 'Use physcial drive'.

Close out of the settings, and then quit VMware Workstation.  Navigate to the directory where your Virtual Machine is kept (default is My Documents, My Virtual Machines).  Go into the folder for your Virtual Machine, and you can safely delete all files EXCEPT for the VMDK file (the 3.3-GB file), and the VMX file (the Virtual Machine Configuration file).

At this point, I zip up the folder, winxpprosp3.  This way, I have a good fall back point, and ususally get 2:1 compression.  Now my Windows XP Virtual Machine is backed up in a 1.6-GB zip file.

Fusion

Let's edit the Virtual Machine's settings.

Select Other Devices.

Remove the Floppy and Serial Port by clicking the – button near the bottom left.

Back up (Show All button), and go to CD & DVD's.  Clear the connected checkbox, and select Automatically detect physical CD/DVD drive.

Now we can quit VMware Fusion.  Navigate through the Finder to where the Virtual Machine's files/folders are (default is a folder in your Home directory).  Find the Virtual Machine name, right-click (or control-click) the file name, and choose Compress.  This will zip up your Virtual into a 1.6-GB zip file.