haripadmam, the vmtool issue is not related to vCloud. Its something that is usually seen on linux machines. I have faced such errors(after reboot the VMtools status says not running) but don't think that is affecting the vCD instance. After installation it takes a while for the Application initialization to complete. I have installed vCD around 10 times and all the time the initialization time varies. But i don't think it wil take an hour. did you check it after an hour or u were monitoring it constantly?
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