Double confirm, something causes the "upgradepkg" script to die (i.e <defunct>)
You can telnet into the box and kill the process and the rest of the system comes up. All the vmtools is installed, so I am not quite sure what the issue is. Perhaps there are some remnants from a previous vmtools package?
I have seen this on one of my test machines as well. If you run the upgradepkg command manually it works just fine, but when the plugin installer runs it, it hangs up.
I think that it is because the install script in the .tgz file backgrounds the vmtoolsd process.
Unfortunately I have been sent to one of our foreign offices and will not have access to my devel server until the middle of next week.
For now, just drop the .tgz file in /extras on the USB stick and it will load up correctly. I will remove the .plg file from the first post.