This issue is resolved in ESX/ESXi 4.1 Update 2 and ESXi 5.0 Update 1. For more information, see the Resolved Issues section of the release notes:
This is still a known issue affecting ESXi 5.1.
To workaround this issue on previous versions of ESX/ESXi 4.1 and ESXi 5.x:
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Power down the source virtual machine.
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Backup the .vmx file of the source virtual machine.
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Save the changes made to the .vmx file.
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Clone the virtual machine again.
If these steps do not resolve the issue, try this alternate workaround:
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Power down the source virtual machine.
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Boot the virtual machine using the Windows Server 2008 R2 .iso file.
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In the Installation Wizard, select Repair your Computer. For more information, see the Microsoft Knowledge Base article 2261423.
Note: The preceding link was correct as of August 18, 2011. If you find the link is broken, provide feedback and a VMware employee will update the link.
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Select Command Prompt.
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Run these commands in the specified order:
diskpart
list volume
select volume 1
attributes volume
attributes volume clear nodefaultdriveletter
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Restart the virtual machine after removing the mounted .iso file.
- Clone the virtual machine again.
Note: If you cannot power down the source virtual machine, you can apply this alternate procedure on the resulting cloned virtual machine as well.