Hi Continuum,
I did as you suggested, but still have the same issue. Here's what I did.
I converted the Win Server 2008 R2 DVD to ISO and uploaded this ISO to the datastore.
Then in VSphere Client, I powered on my VM, went to Edit Settings> CD/DVD drive 1, under Device Type, I selected Datastore ISO file. I also checked 'Connect at power On'
I opened the Console and saw the 'BOOTMGR is compressed' error. Press Ctrl-Alt-Del. I pressed Ctrl-Alt-Del, and continue to the get the same error. I made sure that in the BIOS setup, I have CD-ROM at the top of the Boot Sequence.
Back in VShpere Client menu, I checked and when I click on the CD icon on top, it says 'Disconnect from datastore image', i.e., it's connected to the ISO.
Please advise.
Thanks!