I'm not able to find documentation that state GSX supports Win2k3 SP2. Does anyone know why?
Not supported on GSX, but it is supported on VMware Server:
http://www.vmware.com/pdf/GuestOS_guide.pdf - see Page 35
Basically, GSX has been retired. Support for new OSes will happen on VMware Server (which is free, by the way...)
Thanks for the quick response.