Windows 7 VM won't upgrade in 5.0.3

Hi, folks! I have an issue I could use some help with.

We have a Win 7 vm that was originally created in VMWare Fusion 5.0.2. We upgraded a user's Macbook Pro (Mountain Lion 10.8.3) to Fusion 5.0.3. When we start the VM, it tells us we need to upgrade the VM, and would we like to do this now. We click the upgrade button, and nothing happens. No errors, no nothing. I've been running some Google searches, but no luck. I'd appreciate any feedback you may have.

Thanks!!