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With "Host failures the cluster tolerates, HA calculates "Slots" which are used for Admission Control. With a 1800 MB reservation and one failover host you will have only a single slot available for virtual machines, provided there's sufficient free physical memory.
What does the "Advanced Runtime Info" from the HA pane show, and where did you install vCenter Server (as a VM or on a separate host)?
Unless you already saw this, I highly recommend reading http://www.yellow-bricks.com/vmware-high-availability-deepdiv/
André
PS: Discussion moved from 8. Migration Hot & Cold – HA to Availability: HA & FT