Today I downloaded a SharePoint virtual machine from Microsoft. When I tried to import it to VMWare I got the error that says “source format was not understood”. I google the error and didn’t come with an acceptable solution. So I did the next logical thing, I open the VMC file for the Virtual Server. In there I found that the <absolute> attribute didn’t have any value. I changed that value to the physical location of the machine. In my case it was F:Virtual MachinesMOSS DemoWIN03_MOSS.vhd
When I started the import from VMWare, it worked.