You have the option of specifying a non-default location for the redo log file. By default it is written to the same directory as the VM configuration file. You may wish to change the location to a file system with more room. If you change the location, you should use a local disk rather than a remotely mounted file system for better performance.
Both undoable and nonpersistent disks use a file called a redo log to contain all changes made to the disk during a VM session. In the case of nonpersistent disks, the redo log is discarded after the VM session ends; for undoable disks the redo log is either applied, discarded or saved. If a VM session is particularly long or complex, the redo log can get large. For this reason you may wish to specify a different location for the redo log. All redo logs for a given VM are written in the same directory.