I was doing the implementation of VMWARE VDR 1.2 appliance but unfortunately

it was giving error on all the VMS that were running on windows 2008

I have drilled down & followed many blog posts, especially the below one.

Link Archived

I was able to solve the issue for one of my VM’s by remove VSS from vmware tools.

There were other VMS as well that was having issues, finally what solved the issue for me –>I have moved all VMs  to another ESX server using vmotion.

So there might be some configuration issue in my ESX server as I am able to repeat this many a times.

Right now I am working to find out what can be the difference between to ESX hosts, for now my VDR is working but still some work is left to fix it completely.