Cannot start a suspended VM - cannot find .VDMK

Here's the situation.  I backed up the package with the virtual machine using time capsule.  I had a serious problem and decided to just delete the VM and go back to the time capsule backup.

Between making the backup and now VMWARE fusion did an update. 

I cannot start the restored VM.  It says it cannot find the VDMK though the one referenced is there, is not corrupt and seems to be in good shape.

So I thought I would just create a new VM from the VDMK - or even add the disk to another VM so I could pull some necessary files from it.

It doesn't work.  When choosing the VDMK - it is greyed out - and not selectable.

Questions:

1 - what can I do to get the VM to start

2 - what can I do to make it so that I can select the VDMK and create a new VM from it if I cannot do number 1?

Thanks for any help - I'm quite sunk at this point.