This is a weird situation. From the perspective of vCenter this machine is using all the memory I've given it. From Task Manager it has 80% available memory.
Is there a leak in vSphere somewhere? Bad vmtools install?
This is happening on a vSphere ESX 4 host for us only its an 8GB machine, showing 95% usage in client and having 5GB free in the guest
There are few other people having this issue and various threads, this one started today also:
http://communities.vmware.com/thread/234678
This is known feature with ESX 4.0 running on Xeon 5500 or modern Opteron CPUs and there was patch released for this issue a week ago http://kb.vmware.com/kb/1014019