I don't seem to have the option under Type as you do (Thin and Thick). The available types for me are
- Pre-allocated
- Not pre-allocated
- 2GB Split pre-allocated
- 2GB Not pre-allocated
I guessing Not pre-allocated is the same as thin?
what version of VMware converter are you using?
EDIT:
I have tried Not pre-allocated but the space has not been reclaimed