When running a command such as Storage VMotion (svmotion) e.g.

C:
CD C:\Program Files\VMware\VMware VI Remote CLI\bin
svmotion --interactive

The following error dialogue appears:

perl.exe - Unable To Locate Component
This application has failed to start because libxml2.dll was not found. Re-installing the application may fix this problem.

The Perl installation is not in the Path environment variable. Add the following location to the Path environment variable:

C:\Program Files\VMware\VMware VI Remote CLI\Perl\bin

- Right click My Computer
- Select Properties from the context menu
- Select the Advance tab
- Click Environment Variables button
- Select Path in the System Variables and click Edit
- Append ;C:\Program Files\VMware\VMware VI Remote CLI\Perl\bin to the Path
- Click OK
- Click OK
- Click OK

Start a new command prompt for the Path to take effect

Storage VMotion is subject to the following requirements and limitations:

- Virtual machines with snapshots cannot be migrated using Storage VMotion.
- Virtual machine disks must be in persistent mode or be raw device maps.
- The host on which the virtual machine is running must have sufficient resources to support two instances of the virtual machine running concurrently for a brief time.
- The host on which the virtual machine is running must have a VMotion license, and be correctly configured for VMotion.
- The host on which the virtual machine is running must have access to both the source and target datastores.
- VMware Infrastructure 3 supports a maximum of four simultaneous VMotion or Storage VMotion accesses to a single datastore. A migration with VMotion involves two simultaneous accesses to the datastore, by the source and destination hosts. A migration with Storage VMotion involves one access to the source datastore and one access to the destination datastore. Therefore, if no other migrations are occurring, up to four concurrent Storage VMotion migrations involving the datastore can occur simultaneously.

Basic System Administration
ESX Server 3.5, ESX Server 3i version 3.5
Virtual Center 2.5
http://www.vmware.com/pdf/vi3_35/esx_3/r35/vi3_35_25_admin_guide.pdf