This issue is resolved in vSphere 4.0 Update 3.
To workaround this issue, check if the virtual machine requires a CPU limit. If not, remove the CPU limit.
If you do not want to remove the CPU limit, reduce the scheduling quantum.
To reduce the scheduling quantum:
- Log in to the ESX/ESXi host using the vSphere Client.
- Select the host and click the Configuration tab.
- Click Advanced Settings and click the Cpu page.
- Set the value of Cpu.Quantum to 5.
Note: The default value of Cpu.Quantum is 50.
- Reboot the host for the changes to take effect.