This is a known issue affecting Microsoft Windows 2003 Server virtual machines running on ESXi hosts. This is not a VMware issue.
To resolve the issue, remove the registry subkey related to the local IPSec policy and then rebuild the policy.
To work around this issue, disable IPSec (allowing TCP/IP connectivity without Windows IP security checks) and then restart the virtual machine.
For both options and any related risks, see the Microsoft Support article
870910.
Note:
The preceding link was correct as of June 04, 2015. If you find the link is broken, provide feedback and a VMware employee will update the link.