Just some quick notes on this "upgrade" from beta 2 to rc1 - which is more of a reinstall!
Note: pre-release versions forcefully expire (becomes rather apparent when starting a vmware instance) - but the error message is not that clear - "Failed to start, General error" may appear in the logs as the error but is preceded by a more subtle "version expired, there's a new version out" type message - which is the actual problem.
Stop/suspend all vm's
#service vmware stop
[Recommended - move VMs (for safety/paranoia!), simply mv the whole vmware directory]
[Recommended - good time to check system is up-to-date]
Remove/uninstall existing version (based on 2.0 beta2):
#rpm -e VMware-server-e.x.p-84186.x86_64
#rpm -ivh VMware-server-2.0.0-101586.x86_64.rpm
#rpm -Uvh VMware-server-2.0.0-101586.x86_64.rpm
configure as per normal
check running via web management console
service vmware stop
move vmware images back
start services again
Note, VM images have to be reloaded into the VM inventory - apart from that everything is entirely straightforward!
Alternative approach from tarball:
#tar xvfz VMware-server-*.tar.gz
Some relevant links: