ESX 3.5 Update 2 bug
Many customers are hitting a new bug in ESX preventing them from powering on virtual machines or VMotion them. There is a published knowledge base article on this which reads>>
Unable to Power On virtual machine with “A General System error occurred: Internal error”
A virtual machine fails to power on, fails to leave suspend mode, or fails to migrate with VMotion and the following message is displayed in the vmware.log file for the virtual machine:
This product has expired. Be sure that your host machine’s date and time are set correctly.
There is a more recent version available at the VMware web site: http://www.vmware.com/info?id=4.
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Module License Power on failed.
Currently running virtual machines will continue to run but will not be able to perform migration with VMotion, suspend or power on virtual machines.
VMwarewolf