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With driver version 3.4.115, physical hosts must be configured with 31GB or less of RAM for NetXen NICs to function properly. This is a NetXen limitation. Contact NetXen for more information about this limitation.
A newer version of the driver is avaiable at http://www.vmware.com/download/vi/drivers_tools.html. Driver version 3.4.350 does not have this limitation on ESX Server 3.5.