Why does my Mac have Macintosh HD and Macintosh HD1? I have a VMWare virtual machine of 256GB. The HD capacity on the Mac is 750GB. In terminal under the Volumes folder, I see Macintosh HD and Macintosh HD1. About 300 gigs seem to be wasted.

How do I cleanup the hard drive and why do I have 2 HDs?
When you installed your vmware, you must have partitioned your HD and allocated some storage to the virtual OS. Macintosh HD 1 is the result of a partitioned drive. If you go to disk utility you will be able to see this. I am not sure if you can undo the partition without formatting the entire drive.