[Edit to add: Neal beat me to it. The price of being too verbose :)]
The error indicates that you don't have a library location that contains some Surgient-supplied disk images (specifically, nailserver.vmdk).
Did you start with the 5.3 VQMS installer available in the downloads section of the Surgient Success site? This installer copies the Surgient-supplied images to the location you specify, and creates a library location so that the system can track this content. So, if you went down this path, the only way I can think of that this error can occur is if one of the two things has happened:
1) The disk image (nailserver.vmdk) has been physically deleted from the library location
2) The library location has been deleted
I'd do the following:
1) In the management console, verify that there is a library location pointing to the location you specified during the initial install (log in as platform administrator, click the "Library" tab). If the location is not present, add it -- be sure to specify the same path you used at install time.
2) If the location is present, check that the image is present in a directory called "Templates" under the location's path. If it is missing, you can find it in the "Images" directory in the same ZIP archive the installer came in (the one available in the downloads area of Surgient Success).