"Disk needs repair" means that the .vmdk file is corrupted. Depending on what's wrong it may or may not be fixed easily.
At this point I strongly recommend that you backup all the VMs files, so there's a way back to the current state in case things will become even worse.
What's the virtual disk's provisioned size, i.e. the size that shows up in the VM's settings?
André
PS: Please attach the VM's vmware.log file to your next reply post.
