ESXi 5.5 upgrade VM Hardware

i just moved a couple VMs from a 4.1 host to a 5.5 host.  Physical hardware on both servers is the same.  Standalone single server esxi setup.  No vsphere.  

I upgraded VMware tools on both machines.  Everything is running fine.  

I see an option to upgrade VM hardware.  However it says if I upgrade the hardware I will have to use the webbased vsphere to edit VM settings.  I dont want to have to deal with vsphere.  can I leave the VZ Hardware at the lower level?
Note: In a vSphere 5.5 environment, you must use the vSphere Web Client to upgrade the virtual hardware to version 10. You cannot edit the settings of the virtual machine by connecting directly to an ESXi host or the vCenter Server through vSphere Client that is on Hardware version 10. If you connect directly to an ESXi host using the vSphere Client and attempt to edit virtual machine settings, you see the error:

    You cannot use the vSphere client to edit the settings of virtual machines of version 10 or higher. Use the vSphere Web Client to edit the settings of this virtual machine.

to further confuse me....  I created a new VM on the 5.5 host.  It doesnt give an option to upgrade VM Hardware yet I can change settings on the VM?
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Andrew Hancock (VMware vExpert / EE MVE^2)VMware and Virtualization ConsultantCommented:
If you DO NOT want the newer features available to virtual machine version 10 machines, there is NO requirement to update the virtual machine hardware.

Upgrading Virtual Machine Hardware updates it to virtual machine version 10 or 11 (on vSphre 6.0).

When you create machines, on vSphere 5.5, you can specify which version you want.

The latest version of the older vSphere Client can edit virtual machine version 10 virtual machines, but it cannot add or edit virtual machine 10 features.

Look at the Summary information of the VM, it will show what virtual hardware version the VM is....

this could be 4.0, 7.0, 8.0, vmx-09, vmx-10

virtual machine version 7.0 is likely to be your ESXi 4.1 VMs, the default on ESXi 4.1. But if you upgrade them, using the menu option that will be upraded to vmx-10 (virtual machine version 10 - which originally could only be edited and view using Web Client, VMware stated this was a bug they could not be edit/viewed using older vSphere C# Client, and this got fixed in the latest vSphere Client, but you cannot add new v10 features).

When you create VMs on 5.5, these will default to 8.0. (if you want new features, in v10, you need to Upgrade Virtual Hardware), if selefting Typical options, if you select Custom, you have a choice, of creating 4.0, 7.0 or 8.0.

I hope that answers your questions.

see here for reference

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