My virtual machine is failing and showing error. It says something about failing unrecoverable memory Allocation. Do I need update or something like that?
Yes, You need to upgrade it into ESX 4.o or ESXi 4.0 or maybe higher if possible. The reason you are facing this error message is because of unavailability of memory in the process of VMX. it makes the virtual machine fail. If you update your version, the problem will be solved. The higher version you can manage the better.