I have a discussion in ESXi, but thought I would post my followup in the networking forum,which is where I should have posted the original question I suppose:
I got some more information on this bug, in that the fix that was in the KB that I referenced, was how to fix it when the you have updated and it you have the problem. You may experience the issue if you move to Update 2 and keep the TSO on in E1000 on the host, and then vmotion a vm with e1000 this vm may lockup and lose networking.
If you want to deploy U2, you can simply make the changes before any VMs move to the host.
Now, does anyone know of any issue if you have a guest(rhel 5.5) with e1000 that is using TSO, but the host has it turned off?
Also this will be fixed before U3.