I faced the same issue up till now, but was able to find a temporary solution:
Within KB982168, one of the patches you mentioned is included: KB980773
If you uninstall this patch only and leave the others on the system, everything works fine - so, in your case, you should try reinstalling KB982168 and then remove KB980773 only, maybe this fixes the new error you're facing.
To everyone else: Make sure you do not install KB982168. If you need one of the other patches from this KB, uninstall KB980773 afterwards.
Make sure your vcenter client is version 4.0 Build 208111.
Installing this version fixed my problems, its the version that comes with ESX 4.0 Update 1
I uninstalled KB980773 on one of the affected workstations (Server 2003) and that fixed it for that one workstation. I tried the same thing on my main XP workstation and still get the error.
Where can I get the 4.0 Build 208111 version? Mine appears to be build 162856 (at least on the working workstation). I can't launch the client on my XP workstation to determine the build. The version of VpxClient.exe is 184.108.40.20697.
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VMware vSphere Client and Host Update Utility
Installer for the VMware vSphere Client and the VMware vSphere Host Update Utility 113.8MB
I updated my ESXi 4.0 server with all the latest patches using the host update utility, I redownloaded and installed the VMware-viclient.exe file from the built-in webpage on my ESXi server, and now the file version of VpxClient.exe shows to be 220.127.116.1121. I still can't actually run the client to tell what build it is however, but I'm certain it is up-to-date.
Any other ideas?
That should be the correct version.
look under add/remove programs. Check off the box at the top that says "show updates". Look for .net framework. See if you have any recent installs that have to do with .net frame work. Mine was .net framework 3.0 service pack 2. The below patches can cause this problem.
If updating to the latest vsphere client didn't fix your problem, search for those updates and remove them if possible.
Keep in mind that this is not a problem with the host or your vcenter server, its a problem with the client side and the recent update to the .NET framework.
I uninstalled all the updates mentioned above and still get the same proxy error listed at the very top of this thread:
"Error creating the Web Proxy specified in the 'system.net/defaultProxy' configuration section."
I agree and am absolutely positive the issue is just with my XP SP3 workstation that was updated on Patch Tuesday and that it was a .NET update that specifically broke things. I am at a los, however, on what else I can try except rebuilding the workstation from scratch which is something I'd really prefer to avoid. Here is what my add/remove programs looks like:
I don't know what else to try and this is very frustrating. While I do have a workaround in that I can RDP to one of the working workstations and use the VMWare client from there it isn't really a viable permanent option.
removing KB980773 worked for me, wish I had found this post first, I uninstalled a few others things while trying.
Please try the following:
1) Install KB982168 again.
2) Try to connect with vSphere Client to a server, which error messages do you get?
3) Uninstall KB980773, but leave the other patches installed.
4) Try to connect with vSphere Client to a server again, does it still give an error message ?
edit Try this on your main xp workstation, of course.
I couldn't find a specific place to download KB982168 but I ran Windows Updates and saw 980773 installed after the updates finished. I attempted to run the vSphere client after applying the Windows Updates and I get this error:
Error parsing the server "myESXiServer" "clients.xml" file.
Login will continue, contact your system administrator.
Error creating the Web Proxy specified in the 'system.net/defaultProxy' configuration section.
I uninstalled 980773 and I still get the same error. I also tried the fix described in VMware KB article 1011329 and still get the same error.
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That KB article exactly describes my issue but I still get the error after downloading and installing VMware-viclient-all-4.0.0-208111.exe (VMware vSphere Client and Host Update Utility dated 11/19/09). I'm sure it's just a matter of my .NET installation now being out-of-whack after all the uninstallation and reinstallation attempts.
during the day my computer re-updated itself and of course re-installed KB980773 and vsphere stopped working again. Removed KB980773 for the second time and all is good again.