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I am upgrading legacy templates, stored on a shared VMFS-2 volume, to an ESX Server 3.x host. Why do I get the "Specified parameter is not correct: Host" error message?
For a template upgrade, your host must have read-write access to a VMFS datastore that stores the template. Because ESX Server 3.x has read-only access to VMFS-2 datastores, attempting to upgrade the template before upgrading the VMFS datastore results in an error.
To upgrade your templates residing on VMFS-2, first upgrade your VirtualCenter, ESX Server, and VMFS to VMware Infrastructure 3.