Carl,
>> However, when I attempted to apply a change to make it "Pre-allocate disk space", the Fusion software became unresponsive and I had to force kill it. I gave it plenty of time in case it was actively working, but the disk space was not increasing and no progress was shown, so I did kill it.
"Pre-allocate disk space" is time-consuming operation. you might monitor the filesize changes with below command:
$ cd \Users\cknerr\Documents\Virtual Machines.localized\Windows 7 x64.vmwarevm\
$ while:;do clear; ls -l; sleep 1;done
Best Regards,
changhai