Thanks for the help LucD (as always!)
Sounds like this should be entered as a bug for PowerCLI 10.0 (if not already).
I'm aware that OVF format works with PowerCLI 10.0 works as well as using the ovftool to deploy the OVA.
The reason for not simply using OVF instead is that my organization has been using OVAs in CM (configuration management) for years to deploy systems so all deployment VMs are in that format. OVA format works with PowerCLI version 6 so it should also still work with version 10. We would like to take advantage of the new capabilities in 10 (DRS cmdlets for example). Using the ovftool would be a much smaller impact to us however this would require a relatively small change to the scripts that deploy the OVAs. The ideal solution is to just have 10 fixed so that it worked as 6 did with OVAs so it wouldn't require a change to our scripts/processes/VMs in CM.