I am using VMWare Player and I need to transfer my virtual machine to another PC. Can I just copy everything in the virtual machine's directory to a DVD and restore it on another machine?

Are there any "gotcha's" that I need to be aware of?

I had a look through the VMWare documentation but the answer wasn't evident...

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That should work with no issue, as long as the other system is using a vmware player install as well - the whole purpose of vmware player is to enable things like that.

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