I tried loading it into ESX 3.5 and it sort of worked....until I reboot and every other time it just freezes on the reboot. I haven't had a chance to try it on my test vSphere boxes though. Have you tried?
We ran into the same thing. I have a few vSphere test boxes but I have not yet tried a Win7 guest. On ESX 3.5 we saw that the Win7 guest appeared to be corrupted after a reboot.
At least now I know I'm not crazy. I was going to play around with making it different versions for the VMware tools, etc. and eventually decided it's easier to just wait
Windows 7 seems to work just fine as a guest O/S on ESX 4.0 with the display driver disabled as indicated by the KB article posted above. We have not done too much with it yet, but it no longer crashes permanently upon reboot, etc.
We are running Windows 7 and Server 2008 R2 VMs on vSphere. To get it to run without freezing I had to do a custom VMware tools install and disable the display driver for both operating systems. No problems after that.
JAMES WOOD | SYSTEMS ADMINISTRATOR | ARIZONA DEPARTMENT OF TRANSPORTATION
Phoenix, Arizona