Well, now I've really messed up. I was trying to restore the file from documents virtual machines that ended in .vdmk but it wouldn't complete.
After I saw your message I wanted to check the disk space but couldn't get into windows. When I tried relaunching Fusion, I got a message that the 'file wasn't found'.
I tried reinstalling VMWare from the dmg but when it seems to be complete, I still get the 'file not found' message. The Virtual Machines folder is empty.