Possibly the file is corrupt or non conforming but I suspect actually SW really only imports VRML 1.0 correctly if it does.
I have never had much success with VRML97 any time I have used it.
try taking the file for a trip through free Blender to translate it if you need and see if it helps (http://www.blender.org/download/get-blender/)
import -> VRML97(2.0)
export -> VRML1.0
Another possibility is to try as .STL. - sometimes it will work where VRML won't..
All in all SW is quite fussy about meshes which is not very helpful.
Sometimes it will choke on the size of the file too since there are ususally a great many facets to deal with.
Often the same VRML will import ok as a graphics body but not as surfaces or solids (see open options).
SW seems to have difficulty actually reconstructing planar geometry even though it will parse in the data.
Unfortunately the graphics body is usually not very useful and it often bogs down the graphics card.
Are you trying to bring in textures too?
Edity: A work around might be to try Rhino (25 saves for evaluation download) to do the translation work and then import into SW as either
iges, step, .3dm or possibly use it to smarten up the vrml, stl