Virtual machines running the Microsoft Windows guest operating system might display the following message while upgrading VMware Tools:
A later version of VMware Tools is already installed on this machine. The setup cannot continue.
This message appears when upgrading VMware Tools from ESX Server 3i version 3.5 Installable GA release to any Update 1 version (ESX Server, ESX Server 3i Embedded, or ESX Server 3i Installable version 3.5 Update 1), even though a later version of VMware Tools is not already installed on the virtual machine.