Try changing the SID (newsid.exe) and ensuring that the name of the computer does not already exist in AD.

You can also use sysprep for your w2k3 VM images...  just copy, boot and you got a brand new install of w2k3 with the updates you installed, etc... with a new sid and hostname

Similar problem seen here. Changed server to be a member of workgroup. Restarted, then changed server to rejoin our production domain.

Just a follow up to this topic.  Whilve moving several systems to our new ESX 3.02 system, I had all the problems mentioned above and more, including group policy prolems on an Exchange server which rendered it almost useless!  Many servers came via Converter 3 and Workstation 6.  When I removed the VMWare Tools, rebooted, reinstalled the tools and rebooted again, THE PROBLEMS WENT AWAY!!   I suspect having the Tools from WS6 is a problem.  Thanks for this topic!!  It saved a lot of work and greif!! 

This thread really saved my weekend

Have a Win2003 which have been created in WS6 and then moved to VMware Server and now finally to ESX.

After using Convert to move it to ESX it was really weird and lots of errors in the event viewer couldnt reach shared resources on the network RDP wasnt working and so on

Did the Convert 3 times always ending up with the same problem.

I was about to give up and reinstall everything, which would have meant several day work...

Then i found this golden thread.

After uninstalling VMware Tools and then installing it again from the VI console everything is back to normal.

The Share folder option from WS6 must have been the problem.

VMware Server seems to be uneffected by this share folder option.

Great thread, glad I "finally" stumbled across it.  Just wondering, is VMware ever going to recognize this as a bug and fix it??  It's been around for several releases now....