I have tried resizing using the web interface and that did not work either. I could change the value for the hard drive size but it would not save. I tried using gparted live CD and that did not work either. I was however able to resolve the issue. I had to perform a hot migration using the VM standalone converter. I had to make a number of changes to the system before I could get ssh to work as root but once I was able to do that, I was able to get a live copy of the machine exported as a different VM and during the export process was able to change the disk size and disk type as well. It did take over two weeks and a level 2 engineer from VMWare support for me to get to this!