In researching an issue with my backup solution, it was observed that my SLES 11 sp2 OES sp1 server running as a VM on VMWare 5.0 using the default network config, is dropping packets. The percentage of drop was over 2%. I removed the network adapter and rebooted the server, re-installed the adapter and the dropped rate is now about 1.5%. I also noticed that another VM running the same SLES config was performing about the same. Is this typical of a SLES box on VM? Is this a Linux problem or a VMWare problem? The version of SLES installed is not the VMWare version.

Any thoughts would be appreciated.