As many of you already know there is an issue with the encryption mechanism of ESX(i) 4.1. When passwords are used which are longer than 8 characters the password will be truncated after the 8th character. As such during authentication only the first 8 characters are used. In other words if you have  a 10 character password you will only need to type the first 8 characters correct and the rest can be completely random.

The KB article that was published yesterday contains a workaround to change this behaviour. I recommend everyone to read the article and implement this workaround when your password policy describes passwords longer than 8 characters.

http://www.yellow-bricks.com/2010/07/20/workaround-for-esxi-4-1-password-issue