Just downloaded the Windows Server 2012 RC and tried to install it on ESXi 5 with update 1. No luck. The system starts to boot from the ISO then flashes the "something went wrong" screen and reboots. Happens over and over. I've tried every combination of configurations I could think of (Windows Server 2008R2, Windows 8 Server, etc.) but none of them work. Anyone else seen this?
putting aside that you are running a non-supported guest for ESXi, what SCSI controller are you using? What Guest OS version are you selecting when deploying the VM? Are you sure the media you are using is good?
I didnt get the same problem as you, but i am now running Windows Server 2012 RC so i can share what i did.
I was previously running the old Windows Server 8 beta with help of this kb-article:
When i installed 'Windows Server 2012 RC' with the 'Windows 8 Server x64' vm-template, my vm got stuck at the loading Windows screen.
I then changed to EFI (options / Advanced / Boot Options -> EFI) and reinstalled windows. This time it worked.
Btw this works for "Windows 8 Release Preview" aswell.