So, most ESX admins are already aware of some minor issues with "enhanced virtual motion compatibility" and needing to disconnect/reconnect hosts to a cluster to fix heartbeat issues after upgrading VI to 3.5U2. Otherwise, all has generally appeared fine.
Still, people are finding other bugs:
a) Yesterday I tried to clone a running vm, one of the cool new features. It didn't work out well. Despite VC reporting success, the new vmx file pointed to the old vm's vmdk path which rightly caused a locking problem. I don't think I'm going to use hot cloning again, or whatever they are calling it, until the first set of U2 patches are released.
b) ESX 3.5 Update 2 - vmkernel messages FileIO failed with 0x0xbad0006(Limit exceeded)

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