Seems we do not have Update 1 installed on our Vsphere server.
What way can i upgrade the two server? shall i migrate all servers to one then rebuild?
If you use VMware Update Manager (VUM), you can use VUM to upgrade your ESX servers to vSphere 4.0u1. The best way to do this depends on your VMware license. If you have vMotion and DRS you can put one ESX host in your cluster in maintenance mode. All the VM's will be automatically moved to other hosts in your cluster. You can then remediate the host in maintenance mode. After the first host is upgraded, you can upgrade the other hosts the same way.
Regards, Robert
Use VUM, if you have vCenter Server.
Otherwise use esxupdate for ESX or Host Update Utility for ESXi.
Andre