Clean Up Virtual Machine corrupts disk image

I have VMware Fusion 5.0.3, guest os is WinXP, when I do "Clean Up Virtual Machine" it restores some space on the disk, but also corrupts it. When OS boots, it shows black screen with "A disk read error occurred" message. Luckily I've had an backup. I imported this VM from Parallels, and it works fine except for this.