I was trying insanely complicated things to make this happen. In reality, the process is dead simple and nothing to be feared:
Step One: Grow the size of the vm from the point of vmware workstation (i.e. from the host’s point of view). This only tells vmware how much room to give the vm. It does nothing about the actual disk drive size of the vm from the perspective of the guest operating system.
$ vmware-vdiskmanager –x [new size] [virtual disk file]
for example, I did
$ vmware-vdiskmanager -x 10GB MyOS-Base-cl1-000001-cl2-000001-cl1-000003-cl1-s007.vmdk
where MyOS-Base-cl1-000001-cl2-000001-cl1-000003-cl1-s007.vmdk is the vmdk file used in the .vmx file.
type
$ vmware-vdiskmanager -help to see all the options to use with the command.
Step Two: Download the gparted iso from http://sourceforge.net/project/showfiles.php?group_id=115843&package_id=271779
Step Three: In your vmware workstation –> VM –> Settings –> Hardware –> CD/DVD –> select the radio button “Use ISO image” and use the browse button to select the iso you downloaded.
Step Four: Reboot your VM and during boot, hit the ESC key (assuming Linux OS) - for windows, the same thing is accomplished using F8.
You will get to select your boot device.
Choose the CD/DVD device. What you are doing, with the help of VMWare workstation, is fooling your vm into treating that ISO file as a real CD/DVD player and trying to boot from there.
Your VM will boot to GPARTED and after selecting all the defaults of the options presented to you, you should see:

Obviously, there is some new free space to the right that your vm is not using. You can click “Resize/move” and change the size either by dragging the border or editing the value of “New Size”.

After you click “Apply”, you will see the new partition size:

And yer done. It is that stinkin simple.
[UPDATE: you might, upon running the vmware-vdiskmanager command, get an error about your vm being married to some snapshots. There are several ways to solve this. One, is to create a full clone of the vm. Another is to use VM–> Snapshot manager –> delete snapshot and children ]