This event is logged on the host OS after you receive the following error message within a VM: "Operation on file <virtual machine path> failed (insufficient quota to complete the requested service)".
From the VMware knowledge base: "This error may be seen if the virtual machine is using too much memory leaving too little memory available for the host computer. To resolve the problem you may be able to use the Virtual Machine Control Panel (Edit -> Virtual Machine Settings) to reduce the amount of memory used by the virtual machine. Select Memory then reduce the number listed as the Guest size. Do not reduce it below the lowest number in the “Recommended” guest range. In some cases, editing the virtual machine's memory settings does not resolve the problem. In those cases you should exit VMware Workstation open the file C:\Documents and Settings\All Users\Application Data\VMware\VMware Workstation\config.ini in a text editor, or create it if it does not exist, and add the following two lines:
pref.hardLimitMonitor.UseHardLimitOverride = "TRUE"
pref.hardLimitMonitor.HardLimitOverrideAsPercentTotalMemory = "40".
Save the file and restart the host operating system”.
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