Before I jump into this headfirst I want to make sure this will work. I currently have an ESXi 3.5 host, but I would like to upgrade to ESXi 4. I'm using the free version. My plan is to:
1) Copy the VM folders from the current ESXi 3.5 datastore to a local 2TB hard drive for temporary storage.
2) Wipe the current ESXi 3.5 install and datastore, then install ESXi 4 (clean slate).
3) Copy the VMs from the local 2TB drive back to the new ESXi 4 datastore.
Is it as simple as that?