Well yes you could do it manually.. using ghost and write it out to a image file and then load it by hand again in a new VM... or to put it bluntly, As you've already found, the VMware converter approach is the easiest way of decreasing the disk size.
--
Wil
| Author of Vimalin. The virtual machine Backup app for VMware Fusion, VMware Workstation and Player |
| More info at
vimalin.com | Twitter
@wilva