If like me you accepted most of the defaults the first go around when installing VMware’s Update Manager, you may have found yourself in a situation where there is not enough disk space to contain all of the files. Should this happen, and you need to change the location, you can edit the settings XML file:
“C:\Program Files\VMware\Infrastructure\Update Manager\vci-integrity.xml”
There are two locations you need to edit, <patchstore> and <path> under <docRootHostUpdates>.
Here is an example:
After changing these and restarting the Update Manager service you should be in good shape. NOTE: You may want to copy all of the files from the old location to the new one.
Source: gabesvirtualworld.com