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If you get the cryptic "Error Upgrading VMware Tools" on ESX/ESXi 4x then the following should fix things for you. 

On Windows: 

 Open a command line. Type the following. 

del C:\WINDOWS\Temp\VMwareToolsUpgrader.exe

On Linux: 

 Open a command line. Type the following. 

 mkdir /tmp/vmware-root

 

You should now be able to run the "Install/Upgrade Vmware Tools" from the Vmware vSphere Client interface.