After we talked on the phone last night I started to write up the steps although we just ended up doing it by phone this morning, so for the sake of others this is what was done...
With VMware Fusion closed, copy the "/Volumes/ML SSD/Users/Shared/Mac OS X 10.8.3 64-bit.vmwarevm" Virtual Machine Package to a Volume that has adequate free space to allow for consolidating snapshots.
The virtual hard disk is an 80 GB monolithicSparse type disk and current the Base Disk is ~52 GB and the Snapshot Disk is ~28 GB for a total of 80 GB. Theoretically 160+ GB of free space is needed for both the copy of the Package and space to consolidate, although the actual number will be less. Without knowing the amount of used space by the Guest OS as seen from within the running Guest OS the actual amount of necessary free Host disk space cannot be calculated to less then the theoretical needs. As an example if the actual used space in the virtual hard disk is ~60 GB then you need ~140 GB free.
Once the target Virtual Machine Package is copied then open the copied Package and delete all but the following files.
Mac OS X 10.8 64-bit.nvram
Mac OS X 10.8 64-bit.vmx
Virtual Disk 2-000001.vmdk
Virtual Disk 2.vmdk
Now start the Virtual Machine by double-clicking the "Mac OS X 10.8 64-bit.vmx" file and answer "I moved it" when prompted. Note: Starting the Virtual Machine in this manner will populate a new entry on the Virtual Machine Library window, which going forward you will use.
Once at the OS X Desktop and the system has settled down then shutdown, not suspend, the Virtual Machine.
Take a Snapshot.
Delete the Snapshot.
This causes the Current Snapshot and the Orphaned Snapshot to be consolidated to the Base Disk. (Or the Child Disk(s) to the Parent Disk.)
Start the Virtual Machine and once at the OS X Desktop and the system has settled down then shutdown, not suspend, the Virtual Machine and close VMware Fusion.
Make a temporary Backup Copy of the target Virtual Machine Package.
Now open VMware Fusion and go into the Hard Disk Settings and click Advanced options and check the Split into 2 GB files check box and click the Apply button.
Once finished, start the Virtual Machine to make sure all is still working.
Delete the temporary Backup Copy of the target Virtual Machine Package.
Delete to original copy so as to have room to copy back the newly consolidated and split disk package and then copy it back to its original location.
When starting the Virtual Machine for the first time at its copied location, answer "I moved it" when prompted.
Now back to normal and better then before since consolidating snapshots will only need a little more then 2 GB of free Host disk space, although one should never allow a disk to get that full! 