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V2P Virtual to Physical conversion

I have a 2003 Windows Server as a VM on ESX 3.5 hosted by Vcenter 4.1 that hosts a FoxPro database.  It is using a lot of CPU.  The ESX/vcenter hosting environment that it's on now has a lot of servers on it.  
Being that we are having CPU problems (4 virtual CPUs allocated to this VM) it was asked of me to convert to a Physical Machine.  I suggested rather than do this conversion it would be better to install the latest and greatest ESX host on a powerful Physical server and then migrated or clone the VM over to the standalone ESX server.
 I did about 5 V2Ps in the past ( 4 years ago) using Clonezilla imaging etc,. and had success however, I think by now it may be the trend to install ESX locally using attached storage and have it work like VMplayer on steroids.  Any suggests are greatly appreciated.
Is this the best way to go?
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Avatar of Andrew Hancock (VMware vExpert PRO / EE Fellow/British Beekeeper)
Andrew Hancock (VMware vExpert PRO / EE Fellow/British Beekeeper)
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Hi IanTh, Talking about V2P.  I think I know why they are trying to get this on a regular server as It is experiencing High CPU utilization etc.,  I will have to start a new question on some of the problems this 2003 server Enterprise is giving and try some troubleshooting steps there.
Thanks you.
Hi hanccocka:,  I will try your approach after I clone our problems server and see if I change a few settings eg., Virtual Memory, Defrag HD etc.  first.  Thanks a lot for your help.  I will close this question out and award points soon..
ESX/ESXi 4.x supports version 4 and version 7 virtual machines.

ESXi 5.0 supports version 4, 7 and 8 virtual machines.

There is very little difference between the operation of the VMs, betweeb versions of virtual machine, or hypervisors, unless you need newer features.
just spotted this - 4 virtual CPUs allocated to this VM?

why? vSMP can slow a virtual machine down? is there really a reason to allocate Quad Processors to this VM?

Change to 1, and add more if needed, dont just add vCPUs because you can!
Hi hanccocka:  I know and stated to my the person that built this server already as i've been working with vMware as an sys/admin/engineer for about seven years now and never saw anyone do this.  When I asked them why they did this their responce was they can reduce the amount of vCPUs as they had trouble trying to do this.  I will go over with them how to do this and find out what trouble they had.  In the mean time I did state to them that having the four vCPUs can and will cause high CPU utilization problems etc.,  Thanks again.  I added a question to EE titled
Titled "2003 Server, SP2 Enterprise Edition, High CPU utilization"  if you would like to weigh in on it.
Thanks again.