This issue is true for both GSX 3.x and VMware Server. I am using Windows 2003 EE as my host OS, as well as my guest OS. I am using VMware Server 1.0.1.
The VM is configured to run as the "User that powers on the virtual machine" in the Startup / Shutdown Options.
I logon to the host directly at the host console or use a Remote Desktop (Terminal Server) session.
I then power up the VM using the local Vmware Server console using "local server". I then logout of the host console (or terminal server session).
The VM will power itself down.
In all cases I am using my Windows Active Directory account that is a member of the Administrators group on the Host.
Conversely, if I use the Vmware Server Console from my desktop, using the same AD account, and power up the VM, it does not have the same effect the VM stays up even if I close down the Console session.
In both cases the Windows Task Manager on the host shows my AD account as the "User Name" running the process associated with the VM.
Why does the VM shut itself down?
I realize that configuring the VM to run under the System account solves the problem, and that it is not best practice to Terminal Server into a host and run the Console.