I have a paid VMware Foundation Server license, and just had this happen to me on my ESXi Server. I went to my license configuration page and saw that everything was listed as "Unlicensed Use".
I fixed it in 5 minutes by restarting the license server on the machine where VirtualCenter was installed. Not that this is acceptable, but for those folks who need a quick fix, this will enable you to start your VMs.
We tried this - and more - during our initial troubleshooting this morning. Didn't help in our case unfortunately - licenses were reported correctly on the licensing page, re-starting Licensing Server and VirtualCenter Server didn't help, even dropping back to evaluation mode didn't make it work.
Can't hurt to try though!
Message was edited by: mattjk