Shrinking Disk not releasing host space

I'm using VMware 5.0.2 and decided to clean up my Windows 7 disk, defragment it, then shrink it to free up some disk space on the host.  This is a process I've done successfully many times before using Fusion 3 and Fusion 4.

The process seemed to work fine, but I'm not getting the space back in the host.

The VM disk is showing as 15.6 GB in Fusion, but the OS shows the package as taking 31.54 GB.  I do not see any snapshots in the GUI.

I've attached the support info .tgz file if anyone is interested in taking a look.  I even went so far as to use vmware-diskmanager to make a copy of the disk, but the copy was the same size.

Thanks for any pointers.

John