There's a nasty bug that's just been found in both VMware ESX 3.5U2 as well as VMware ESXi 3.5U2 where Virtual Machines fail to power on or VMotion successfully. This problem began to occur on August 12, 2008 for customers that had upgraded to ESX 3.5 Update 2. The problem is caused by a build timeout that was mistakenly left enabled for the release build.
VMware Engineering has isolated the root cause and is working to produce an express patch for impacted customers today. The target timeframe is 6pm, August 12, 2008 PST.
Regards,
The Outspoken Wookie
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