Hmm. I see. I was under the impression that the "VMware vSphere 5 Hypervisor" was a free type 2 hypervisor, but ESXi type 1 was not free. Thanks for clearing that up. This stuff is so damn confusing. I think the biggest mistake was calling the whole product "vSphere" and then also have a "vSphere client". Causes (me at least) a lot of confusion. I think I finally got the differences straight.
Thanks!