After talking to VMware support, I realized that I had to update the esxcli_default.cfg, which now looks like:

# Accept the VMware End User License Agreement

vmaccepteula

# Set the root password for the DCUI and Tech Support Mode

rootpw password

# Choose the first discovered disk to install onto

# The installation media is in the CD-ROM drive

installorupgrade --firstdisk=usb --overwritevmfs

# Set the network to DHCP on teh first network adapater

network --bootproto=dhcp --device=vmnic0

paranoid

# A sample post-install script

%post --interpreter=python --ignorefailure=true

import time

stampFile = file('/finished.stamp', mode='w'

stampFile.write( time.asctime() )

#reboot when done

reboot

I tried doing another install, and after hitting shift+o at boot and specifying the location of ks.cfg file, it went through then install, but I got an error message "User-supplied %post script failed. (Error code 256)", and there was no /finished.stamp file after it booted up.  I also checked in /var/log/esxi_install.log, and didn't find any error after the parsing of the arguments that showed any sort of error.  Any thoughts on why that failed?

So, while I was able to get further on this, I still had to interrupt with shift+o; it wasn't very automated.  In looking at the VMware documentation, I need to use the mboot.c32 from the installation ISO, but when I try to install after that change, I get an error ""failed to load com32 file mboot.c32".  I am using syslinux 6.0.3.  Any thoughts on why I'm getting this?

Also, any thoughts on issue #2?