VirtualLarry: You did indeed miss something else.
The first partition on Disk 0 (C: ) is appearing as a 14GB volume in the upper pane, not 45GB as allocated and shown in the lower pane. This is also displayed in the system properties window to the left.
But I don't know why, sorry. If I were to guess I'd say VMware is munging the reporting of the size of the disk for some reason, and that throws off the rest of the numbers as well. The proportion of used:free still seems correct, so you should probably do something about the available space.
[edit: it's not just you. This guy has a similar issue.]
http://communities.vmware.com/message/1838411
[edit again: This guy fixed a similar issue by allocating a bit more space for the guest disk, restarting, and extending the volume.]
http://social.technet.microsoft.com...n/thread/a3ef5a28-1e6d-427a-8a65-f10e3e197625