May updates just went live on the VMware site folks.  Make sure you’re familiar with the contents of the release notes before plunging in and applying these.
Release Notes links:
VMware ESX/ESXi Server 35 Update 2 http://www.vmware.com/support/vi3/doc/vi3_esx35u2_vc25u2_rel_notes.html
ESX Server 3i version 3.5 Update 2 Installable http://www.vmware.com/support/vi3/doc/vi3_esx3i_i_35u2_vc25u2_rel_notes.html
ESX Server 3i version 3.5 Update 2 Installable Embedded [...]

Here is another Demostration video from the Dell TechCenter (www.delltechcenter.com) on using VMware Converter 3 to migrate a running Dell PowerEdge 2650 server to a VM on a Dell PowerEdge 2950. It’s as simple as walking through a wizard.

VMWare just announced the general availability of VMware Converter 3.0
VMware Converter lets you convert physical machines to virtual machines while they are still running. This is truly incredible. The virtualization of your server farm is now a pretty simple affair, Not only that, think of the potential of cloning a physical machine [...]