Per this snip it from VMware.com/support:
“An issue with ESX/ESXi 3.5 Update 2 causes the product license to expire on August 12, 2008. VMware engineering has isolated the root cause of this issue and will reissue the various upgrade media including the ESX 3.5 Update 2 ISO, ESXi 3.5 Update 2 ISO, ESX 3.5 Update 2 upgrade tar and zip files by noon, PST on August 13. These will be available from the page: http://www.vmware.com/download/vi. Until then, VMware advises against upgrading to ESX/ESXi 3.5 Update 2. “
What does this mean? It means if you build a new VM power off and try to power on a VM you are f’ed! No turny ony for you.
Possible work around change the date on your VM host pre Aug 12 if you can. But don’t worry we’ll have a patch TOMORROW! I would not be surprised if we don’t get a patch today, at least I hope I am surprised.