What sort of CPU do you have in the host? You might want to PM the guy that tested it and see if your hardware is similar. It may be a component that is causing the problem. Also take a look at this thread - http://communities.vmware.com/thread/163274?tstart=0 to see if the error is similar.

Works for me on the Optiplex 755, which is the Core2 processor. I didn't run the install, though - just booted from a usb stick.

Odd and annoying - went back through all version available and ended back up at 1.1.8 - any newer versions than this don't work.

Also, don't leave your usb key in when booting up successfully - ESX throws a wobbly and gives a pink screen of death...