Shrinking a VM HD - does the destination datastore need to have enough space for source or destination VM?

Hi all,
 
I have a File Server with the existing HD's configures:
 
HD1: 60GB
HD2: 20GB
HD3: 650GB
 
Total :730GB
 
I plan to shrink HD3 to 250GB  which will give me a new total of 330GB.
 
My question is, when I run through the VMware Converter Standalone Process and I get to the step where I select the 'destination location'.  Obviously I need to select a datastore that can fit the destination VM.
 
My concern is that it shows the source disk size (730GB) (see image below), and that for some reason as part of the conversion process the destination datastore needs the storage of the full 730GB as opposed to 'new' vm size of 330GB

Source Disk Size
Can someone confirm?
 
Thanks
fieldjAsked:
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vmdudeConnect With a Mentor Commented:
Yes you are correct. The conversion process is handled by the converter, There is no false inflated space (if that makes sense :) that is required if you are re-sizing a volume during conversion.
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vmdudeCommented:
Hello

No problem with the above screenshot, the options to resize the disk comes on the next screen. If you click next you'll probably get an error stating that there is not enough room on the target datastore. You will then be able to manually adjust the size as well as choosing to thick or thin provision the storage
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fieldjAuthor Commented:
So as long as I have over 330GB on a datastore for my new VM I will be safe?  I definitely don't need more than this to cover the conversion process?
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fieldjAuthor Commented:
Great answer - thank you
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