Background System Info: 1 x Intel E6750 processor, 2 x 320GB SATA II in RAID 1 (OS), 5 x 320GB SATA II in RAID 5 (DATA/VMs), Intel Series 3 chipset with ICH9R mainboard, 4GB DDR2 memory, SATA DVD-Writer.
On the same host, I have upgraded the VMware Server from v1.0.6 to v2.0RC1. First noticeable difference is the amount of free physical memory available despite no chance in number of guests/VMs running. Allowed it to run for >24 hours, the amount of free physical memory still remains low (<512MB). In v1.0.6, the memory trimming would result in unused memory by the guests/VMs to be return back to memory pool thus the amount of free physical memory would normally increase after the guests/VMs are left to perform its low tasks over a period of time (eg. 12 hours). However, with VMware Server 2.0RC1, the memory trimming does not appear to be working as there is no increase in amount of free physical memory on the host.
Further, if the VMware Remote Console is left open over a period of time, the console would appear sluggish. Closing it and relaunch a new VMware Remote Console would restore the responsiveness.