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Welcome to the VMware Community forums. With update 4, the free version of ESXi went back to being read only for configuration changes. I was under the impression that it would impact items like changing the configuration of your host, but it appears to extend to managing VMs as well (i.e. I test with the RCLI to create a snapshot and it failed with the restricted version error).
I'm not sure on what line in your code that does the backup fails, but you are seeing a side effect of VMware closing up on an unintended ability to use the RCLI to use read/write operations as was released with update 3. So basically it is a restriction from using the free version. A very dumb restriction if you ask me.
The only "solution" you have for this problem is to go back to update 3.
for more details on this.
Visit the VMware developers wiki at http://www.vi-toolkit.com| Author of Vimalin. The virtual machine Backup app for VMware Desktop Products1 person found this helpful
| Vimalin : Automated backups for VMware Fusion and VMware Workstation Professional
| More info at https://www.vimalin.com
| Twitter @wilva
| VMware Wiki at http://www.vi-toolkit.com
Thanks guys, now I know
So how do I go back to update 3? Is there a simple way to revert or do I have to start all over?
On the initial ESXi boot screen you can press shift+r to revert back to the prior version of ESXi that you were running.