Before I upgraded to OES2 SP1 (from plain OES2 Linux) the CPU of the VM (on
ESX 3.5) could be 100 MHz

Now after update of the VM Tools (which show as Out of date, no idea why) &
all updates to OES2 via Yast Online Update I have the VM idle CPU at ~ 1200

I would not call it improvement!

Anybody has any suggestions?