Up until version 7.0b, I have been able to install to a USB stick, and run from it, and have the datastore on local hard disk drives.
That way, I can upgrade by replacing the USB, and reattaching the datastore drives.
In update 1, that now breaks. It seems to have something to do with the relocation of the OSDATA partition to the disk.
After installing ESXI to the USB drive, creating/attaching the datastore, and rebooting, I found 2 issues.
First, I can not install VMTools, as it cannot find the iso files.
Second, if I create a VM, it disappears when I reboot the host and I have to reregister it.
I logged in with SSH and can see that I have broken links for the locker and the productLocker locations.
The links were fine before adding the hard disk datastore.
This I think is what is breaking VMTools, and not allowing the host to remember settings.
If I go back to version 7.0b, everything works fine. The locker and productLocker stay on the USB, and the scratch moves to the hard disk.
Is this a bug, or do I need to do something different for update 1?