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Question regarding Security Guide

Per the 5.1 security guide you should:

     Limit informational messages from the virtual machine
     to the VMX file to avoid filling the datastore and
g a Denial of Service (DoS). A Denial of Service
     can occur when you do not control the size of a virtual
machine's VMX file and the amount
     of information exceeds the datastore's capacity.

I was always under the impression that the OS did not know it is virtualized.  If it does know its virtualized how could it modify the vmx?  Also anytime I edit the VMX I have to power the Machine down, so again how can bade code cause damge to the vmx.  An example would be helpful

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