Uh oh, failed on VM-Kernal file not matching. After finding other users on the VMTN Discussion Forums with the same problem...but no solutions...I decided to download the ISO file and try an upgrade from CD. Went through the CD Upgrade and about half way through it failed to read the VM-Kernel file from the CD. Seriously? The CD Media checked out fine! So I burned a new CD (at 8x speed just in case) checked it again and started the upgrade process...same thing. Wow, this is lame. So I decided I might as well just do a clean install as I'm sure my system is hosed by now anyway.
Clean install worked fine off the CD Media but now I had to re-setup all my LUN Paths, Networks, DNS, IP's, etc. No biggie, its not too hard and I have Server#2 to look at as a reference. After deleting the new old Server#1 from Virtual Infrastructure and re-adding the new Server#1 I find that I can't light up VMotion and all my test boxes have been (orphaned).
Ok, I'm starting to get worried as I can't really upgrade Server#2 if I can't move my 8 production VM's over to Server#1 and I'm not really sure I want to after this smooth upgrade I've just had.
Time to call VMWare Tech Support. I have the gold support, which means I call them... they take my info and call me back the next day. Not ideal...but at least my production VM's were still running. After a couple days of phone tag with VMWare support I finally get to talk to somebody and he quickly shows me a command to fix my orphaned test VMs ( vmware-cmd -s register /vpx/vms/
Upgrade for Server#2 planned for next week...I hope the upgrade goes much smoother.