Terminal.app is actually doing what it's supposed to: shift-TAB sends ESC [ z which Emacs reads as M-[ z. The problem is that the terminal description for xterm-color (the one usually used with Terminal.app and other terminal emulators) is missing the kcbt declaration, so Emacs doesn't know that that's what the key sends.
There are two ways to fix this:
Edit the terminal description:
$ infocmp >xterm-color.ti
$ printf '\tkcbt=\E[Z,\n' >>xterm-color.ti
$ sudo tic xterm-color.ti
Tell Emacs about it directly:
$ echo "(global-set-key "\M-[Z" 'something)" >>~/.emacs
The problem in both cases is that there doesn't seem to be a backwards-tab command to substitute for something. Emacs.app binds backtab to yank; what do you want it to do?
You need to extend the windows disk size from a running windows.
Here is how you do it: http://kb.vmware.com/selfservice/microsites/search.do?language=en_US&cmd=displayKC&externalId=1007266
Now that you have extended the VMware image size, you need to start at #6 in the link.
EDIT:
I don't want to write a new answer, and the comment text-box isn't large enough - so here is a more less re-write of the link:
1) extend the VMware image size.
2) attach the HD image to an existing virtual disk of the same OS as the resized image (Virtual Machine Libary->[select the VM to use]->Settings->Hard Disks->[click +]->[select the new HD in left menu]->File name->Choose existing disk...->[navigate to the resized image, and select the .vmdk]->[choose "Share this virtual disk....."]->Open->Apply) - if you will go the safe way, you'll choose "Make a separate copy af the virtual disk" instead of the "Share this virtual disk...."
3) Start the virtual machine that you just attached the new HD to.
4) Now because you are using Windows 7, you need to go to "Start->Computer Management->Disk Manager" and right-click on the partition you need to extend, and select "Extend Volume".
5) power off (shutdown VM) - and remove the HD attached in #2 - don't delete it...!
6) if you in #2 choose to make a copy of the .vmdk, then you need to replace it manually in the VMware image file (package) - right click on the VMware image (.vmwarevm)->Show Package Contents.
7) Power on the virtual machine from #1, and verify the disk size change.
Best Answer
To get Emacs on Windows to recognize something other than the Alt as the meta key is hard.
However, you can easily remap any keys on the Mac keyboard, including modifier keys, to be any other keys on the Windows keyboard via Fusion. I have my ⌘ key mapped to Ctrl on Windows. So one way to make the ⌘ key your meta key is to map ⌘ to Alt.
In Fusion 5, Select Virtual Machine -> Settings... -> Keyboard & Mouse. That will bring up a list of profiles you can select from, duplicate, and edit. Hopefully it's obvious from there; if not, consult the built-in help by clicking on the question mark on the lower right of the Keyboard & Mouse panel.