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"Virtual machine failed to start" error after upgrading to VM Server 1.4

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I have VMware Server 1.4 running on a server that is accessed by 12+ users.  Up until I upgraded from GSX to Server 1.4 everyone was able to start and stop machines from their client consoles.  Now I can only start machines from the server console.  I have upgraded all of the machines hardware under VM menu and created new machines under Server 1.4 platform with the same result.  The error I get on the client console is “Virtual machine failed to start.”.    The host OS is Windows Server 2003 SP2 32bit with dual Xeon processors.  I have tried updating the client console and VMware tools also.


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