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I just switched from Parallels 3.0 to VMWare Fusion. I like VMWare much more but with Parallels when I created a Virtual Machine I could choose a location. It would default to a location but in this case when I created a Windows XP machine it automatically put it in my Documents folder. I don't like this because nightly I have Chronosync sync my Documents folder to a Base Station drive. That would add a lot of data nightly. I have gone through settings but have found no way of moving my virtual drive. I know I can physically but then VMWare won't find it.
Just drag your virtual drive files to a different folder of your choosing, then when you start VMWare, just tell it to open the VM from the new folder.