windows 2008 x64 R2 running on ESXi 4.1 hangs randomly

I am having issues with Windows 2008 R2 locking up randomly even after applying patches (including Update 1). I have verified that the patches are up to date with vSphere Host Update and have updated VMWare Tools on the Windows 2008 R2 server after applying patches.
It locks up when going to eventvwr, sql management studio, etc. I've read that you have to manually apply the WDDM driver and the lock ups will dissapear. After "upgrading" the new driver the system locked up while quiting the driver update dialog. Even with the new driver installed it still locks up randomly.

When the system locks up, I am able to ping the server, but like other people that have reported the issue, VMWare console stops responding and I can't Remote Desktop to the server. I have tried to remotely restart the server using "shutdown" command, but that doesn't work either.

ideas?
Hentie_SAAsked:
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bgoeringConnect With a Mentor Commented:
Try this - Uninstall VMware Tools

reboot

Install VMware Tools without the svga driver

See if lock ups disappear, we can go from there

Good Luck
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Hentie_SAAuthor Commented:
Well, well, well! I tried to upgrade the SVGA driver to the newer version, no luck. I tried to uninstall the specific SVGA driver with limited success. When I looked again it was back and the system was hanging.

But following your steps finally worked. Simple and easy. Thank you bgoering!
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Hentie_SAAuthor Commented:
Great work thanks.
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bgoeringCommented:
No problem - glad you got it going
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