Hi Alvin, I have slightly modified my response above. For consistency, I would recommend choosing "thick provisioned eager zeroed" but it is not a hard and fast rule. Also if you are intending to publish your VMmark results, the size of the Client VM disk needs to remain 32GB.
Yes, you need to install all the packages. The cygwin installation is quite large. It's one of the longest steps in setting up the client.
Thanks,
Rebecca