Hi,
How do I resize the start up drive using VMware? 650 mb is small 
http://www.ffnn.nl/pages/articles/linux/vmware-player-image-creation.php has information and empty image files. One needs to have vmware boot from the image file and have the larger empty image file available. run the haiku installer to install haiku to the blank inmage, then configure vmware to boot off of the new haiku install.