syslinux limitations prevent installation of ESXi from RHEL5 PXE server

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Issue

ESXi 5 installation gets stuck while loading files from a Red Hat Enterprise Linux (RHEL) 5 PXE server.

I have tried the same on RHEL6 and it works fine.

VMware claims to test ESXi PXE installation on syslinux 3.86 and above.

Environment

VMware ESXi 5
Red Hat Enterprise Linux 5 (RHEL5) as a PXE server for ESXi installation

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