Dragon3303,
Yes it has been a while. Unfortunately we were new to VMware and have a seasonal environment where the peak use of our RDS servers does not last very long. By the time I got deep into troubleshooting and experimenting with this our busy season was over and we didn't have the same user environment anymore.
I will say that because of some misconfiguration our slot size was too large, so we took another look at all of our CPU allocations on our VMs and adjusted them downward. We now are running 2 dual core CPUs on all of our RDS servers along the lines of what a.p. recommended above. It did not reduce performance, but again - we have not been able to duplicate the number of users accessing the web the way they were during our busy season.
If it is not fixed I'm expecting to see it again this year in November, then I'll re-open my VMware case, and repost to this thread if appropriate.
My gut feeling is that VMs do not support RDS in the same way the physical servers do, but we've not been able to nail it down. Sorry I couldn't help.
