Hang when rebuilding a new virtual disk

I tried to create a new Windows 7 x64 client this morning. I went through the wizard and was able to change the SCSI drive to be one file, not "split into 2GB files" without issue. However, when I attempted to apply a change to make it "Pre-allocate disk space", the Fusion software became unresponsive and I had to force kill it. I gave it plenty of time in case it was actively working, but the disk space was not increasing and no progress was shown, so I did kill it.

Thanks.

Carl