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insufficient resources after upgrade

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Just upgraded from ESX4.0 to 4.0 update 2 (build 261974).  everything looks like it went OK but when i try to power on the VMs after the update i get an "insufficient resources" error displayed on screen in vSphere. 

 

anyone any ideas? the HDD is fine with 295GB free capacity according to vSphere. I've also rebooted the server but that hasn't helped.


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