Sethi,
Welcome to the VMware Community Forums!
The file Machine name-s153.vmdk is the equivalent of the hard drive in physical computer (VMDK = Virtual Machine DisK). If you delete that file, you'll lose all your work in the virtual machine.
If it states that the file is corrupt, and you are in VMware Workstation 6.5 or higher, you can use VMware-VDiskManager to check the file for errors and try to repair it.
vmware-vdiskmanager -R EvilOne
1 - Check the documents
2 - Search the forums
3 - Post Question
And remember to award points to those who assist you.