To those users who has dloaded & installed Update 2 for their Esx 3.5 servers;
Due to an undefined date bug, vmware Esx 3.5 Update 2 servers will not power up VM's by today.
You can find specific info @ here

To solve this problem u need to change the time on Esx servers by typing below commands from service console.

service ntpd stop
date -s 20080811
vmware start
service ntpd start

This is not a total solution by all means, but since there is still no released bugfix for this problem(VmWare says there will be in 36 hrs), these commands will help to power up yr vm's.