| 98% | /Volumes/BOOTCAMP |
you need to free up more space
Also, you have around 5 snapshots.
Try deleting snapshots as described in VMware KB: Deleting snapshots in VMware Fusion
-------------------- update .
The only way around this is to consolidate snapshots VMware KB: Consolidating snapshots in VMware Fusion
or move the virtual machine bundle from
/Volumes/BOOTCAMP/Windows XP Home Edition.vmwarevm to a location anywhere on your main drive (probably Mac HD ) .