So I have Windows XP Partition in FAT32 and since it's an VM importing from a Boot Camp partition the Disk Size reports itself as the original hard drive which is something like 466 GB
Ideally I'd like the VM to report a more reasonable and accurate size so WoodyZ in the Fusion forum suggested I could use Converter
When I try that I get the following
10:45:36 PM Step 1 : Connecting to VMware Converter Agent on localhost
10:45:36 PM Step 2 : Creating target virtual machine and converting data
10:45:37 PM Configuring parameters for the target virtual machine...
10:45:39 PM Creating target virtual machine...
10:45:41 PM Taking a snapshot of the volume...
10:45:56 PM ERROR: Failed to take snapshot of a source volume.
Possible causes include not having any NTFS volumes on Windows XP or Windows 2003 source systems,
and not having enough free disk space.
VMware Converter Agent logs can be found on localhost at C:\WINDOWS\Temp\vmware-temp\vmware-converter*
VMware Converter Client logs on this computer can be exported, or found at "C:\Documents and Settings\Name\Local Settings\Temp\vmware-temp\vmware-client*"
VMware Converter logs are stored on a temporary basis, and should be retrieved as soon as possible.