Problem solved.
The Import function has been removed from Workstation 8 and handed-off to the VMware vCenter Converter Standalone. This is a separately installable application and allows the conversion of a myriad of fomats, both virtual and physical.
VMware vCenter Converter Standalone provides a wizard-driven interface to guide you through source and destination selection. To use it with Workstation 8, just connect to the local server when prompted.