The New Virtual Machine wizard prompts you for a virtual machine name and a directory for the virtual machine files.

The name of the default directory for virtual machine files is derived from the name of the guest operating system, for example, Microsoft Windows 7 (32-bit).

For standard virtual machines, the default directory for virtual machine files is located in the virtual machine directory. For best performance, do not place the virtual machines directory on a network drive. If other users need to access the virtual machine, consider placing the virtual machine files in a location that is accessible to those users.

See Using VMware Workstation for descriptions of the virtual machine files.