I had this question recently regarding the best way to format volumes in a Windows 2008 Guest OS, and if there were any considerations with the different formatting types on a volume which resides on a thin provisioned VMDK. Just to be certain that what I was stating was actually true, I set up a small test. Bottom line – use quick format when formatting the volume as a normal format will fill the volume, negating the space-saving associated with thin provisioned volumes.