Further to this I did the following
I turned on 8 dot 3 on the E: APP Drive
fsutil 8dot3name set E: 0
Then after rebooting in Safe Mode with Command Prompt
fsutil file setshostname "E:\Program Files" PROGRA~1
Repeat this for all the sub directories
fsutil file sethostname "E:\Program Files\VMware" VMware
fsutil file sethostname "E:\Program Files\VMware\Infrastructure" INFRAS~1
fsutil file sethostname "E:\Program Files\VMware\Infrastructure\vSphereWebClient" VSPHER~1
Now reboot and Web Service works