Windows 2008 R2 and Windows 7 Freeze on VMware vSphere 4
Although this issue has been resolved with vSphere 4 U1, for those of you that haven’t upgraded please be aware of a known issue with Windows 2008 R2 and Windows 7 where the guest operating system can freeze for a long period of time. The issue is noted in VMware KB 1011709.
The resolution is to either upgrade to U1 or to use the standard SVGA driver and not the one provided in the VMware Tools package.
VMware KB 1011709 Excerpt…
To deselect the SVGA drivers installed with VMware Tools:
When you install VMware Tools, select VMware Tools Custom Install and deselect the SVGA driver.
Alternatively, remove the SVGA driver from the Device Manager after installing VMware Tools.

The issue does not seem to be resolved in U1 Esxi with any video driver, systems still freeze after a time. using Standard or SVGA II on w2k8R2
December 18th, 2009 at 6:45 pmIssue is NOT resolved in U1A in my VMware environment. I’m at build level 208167 and vms with W2K8R2 still freezes. I’ve removed the SVGA II driver and hopes this will keep the vms going.
December 30th, 2009 at 10:34 amYou may actually have to uninstall the video driver and reinstall it or uninstall VMWare tools completely and then reinstall the VMWare tools package.
If uninstalling the driver by itself, make sure to select the “Delete Driver Files” option after removing it from Device Manager.
February 24th, 2010 at 2:53 am