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ESX-4.1 Vmware virtual machine facing high load while initiating a java based application on Red Hat Enterprise Linux 5.5

Solution Verified - Updated 2013-02-24T02:22:45+00:00 -

Issue

Application takes unusually long time to start up - 25-30 minutes instead of the regular 2 minutes. The system load goes up steeply during this process.
A Hyperic monitoring agent (java based) installed on this server also takes unusually long time to startup ( more than 10 times the normal startup time)

Environment

Red Hat Enterprise Linux 5.5
Vmware hypervisor - ESX-4.1
ATG application with jdk1.6.0_22 64bit and jboss-eap-5.0.

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