Hi,
Upgraded my two hosts from ESX 3.5 update1 to ESX 3.5 update2 using update manager. I upgraded my VirtualCenter server first. All went well, except I got an error on HA. On one of the hosts I got "HA agent has an error", the cluster showed "could not contact primary HA agent". Happens sometimes, so I selected "reconfigure for HA" on the failing host. This did not work. Ok, so I deselected HA all together, then reselected HA on clster level. Same problem occured.
I finally found the answer: When I looked at the configuration of my hosts, at "DNS and routing", I noticed a little "reboot" sign next to the hostname. Weird, since I did not change the names of the hosts. Reboot of the ESX hosts plus virtualcenter did not solve the problem. Finally I noticed that my hostnames started with a capital letter, and the dns name (obsiously) did not. After changing the hostsname to all non-capital characters, the reboot sign disappeared immediately without any reboot (!!??). Performed a reboot anyway, enabled HA on the cluster and all was well again.
Kinda answered my own question