Ok. I figured it out with help from http://www.goitpartners.com/blog/?p=662
I changed hostnames of the system. It has been a few years since using SLES but I thought that yast would update /etc/hosts? This posts also mentioned that there is a syntax error in /etc/vmware-sso/register-hooks.d/10-vmware-vshpere-client line 191 so i fixed that too.
I still have a question. In the KB 2036744 step 9 shows to cat your server cert and chain cert. Step 10 then shows to copy the resulting output to /etc/ssl/certs.
Create the root cert chain required for VPXD/SSO by running the command:
cat rui.crt rui-ca-cert.pem > chain.pem
Add the CA chain to the default location by running the command:
cp chain.pem /etc/ssl/certs/rootca.pem
dont you just want to put your root ca and/or intermediate in /etc/ssl/certs?