I tried to change the thin provisioning setting and that didn't fix it. I also tried to recreate the .vmdk file and that didn't work either.
I did notice when I go to add it to the machine it looks funny. It does not have the / in between the files. I am wondering if I should move the files to a different directory. when it comes up and shows /vmfs/volumes/511d50b9-3f75b270-7f97-78e7d18c35fe/AD+JQ-2fExchange Test - Indiana AD+JQ-2fExchange Test - Indiana _3.vmdk, that isn't right. It should be /vmfs/volumes/511d50b9-3f75b270-7f97-78e7d18c35fe/AD+JQ-2fExchange Test/Indiana AD+JQ-2fExchange Test - Indiana _3.vmdk. At teast I would think that. However, when I manually edit that in the vSphere interface it says it cannot find that file. Would it be advisable to move the file?