Hi Jim,
I have 2 nested ESXi running with esx-tools-for-esxi-9.7.0-0.0.00000.i386.vib installed but both of them the daemon is not starting (I assume vmtoolsd is the right service to check)
From nested ESXi
/var/log # /etc/init.d/vmtoolsd start
vmtoolsd started
/var/log # /etc/init.d/vmtoolsd status
vmtoolsd is not running
This is what I can see from /var/log/vmkernel.log
2014-01-27T08:07:43.817Z cpu1:46568)User: 2742: wantCoreDump : vmtoolsd -enabled : 0
2014-01-27T08:07:43.841Z cpu0:46570)User: 2742: wantCoreDump : vmtoolsd -enabled : 0
Attached vmware.log