Just did a second VM update and it would not boot past the Apple logo on restart. Waited a few minutes. Shut down the VM completely. Re-started VM and it booted fine.
Thanks for the replies, but it's just not working for me. I did the chmod -R 444 AppleLSIFusionMPT.kext and also did the ls -l to verify that the permissions matched the ones in post 41. I then downloaded the combo update, installed it, and right before the reboot did another ls -l to make sure the permissions were still read-only. I then did the required reboot and afterwards it hung on the grey apple logo. I left it for ten minutes, powered it off and back on again, and it still froze at the Apple logo.
I'm 100% sure I followed the directions correctly. One possible wrinkle is that this is Lion Server (which is really just regular Lion with the server app installed via the App Store--but it does use a different combo updater than Lion without the server app installed).
I also want to make clear this is on ESXi 5.0 build 474610. I think all of VMWare's other products (latest builds) have been updated to fix this bug without replacing the kext. I know there is a newer build of ESXi 5 but I haven't been able to find out if it contains this fix also.
Ah well, I've restored my original snapshot now and will hold off on the 10.7.3 update until some more people have tried it.