Per page 6 of the server documentation (://h18004.www1.hp.com/products/quickspecs/12199_div/12199_div.pdf), the server may require the Virtual Machine Management Pack to assist with virtualization.
I used this link to download the 3.10 version of the ProLiant Essentials disk that has the above mentioned item:
https://h20392.www2.hp.com/portal/swdepot/displayProductInfo.do?productNumber=ISDVD#3.10
Also, because I was using VMWare 10, I will also try the ESX version from HP located here:
http://h18004.www1.hp.com/products/servers/software/vmware/esxi-image.html
If anyone is familiar with these or are able to test these before me let me know.
Thanks.