VMWare Server 2 RC2 fails to boot VMs

For a couple of days now, VMWare Server 2 RC2 was refusing to start virtual machines. It kept waiting at 95%. It turns out that VMWare cannot boot virtual machines (or upgrade them) when kernel modules kvm_intel, kvm etc are loaded. Here is the error message from hostd.log: Question info: The virtualization capability of your …

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