previously you could hit 'shift-O' at boottime and type 'shell' to logon on alt-F1. did they remove that in update 2? i get the advanced options prompt but typing shell doesn't give me a logon prompt.. what happened?
If it was there before, then, yes, they have removed that feature. Instead, press Alt+F1, then type "unsupported" and you'll get the password prompt. Type the password, or leave it blank if you haven't set one, hit enter, and you'll be at the shell.
The shell option was removed quite a while back (I think after the beta). The option mentioned above is what works now and you can enable SSH as well (unsupported though) http://www.vm-help.com/esx/esx3i/ESXi_enable_SSH.php