Creating a snapshot (including the memory state) of a virtual machine on Windows fails
You see the error:
Cannot create a quiesced snapshot because the create snapshot operation exceeded the time limit for holding off I/O in the frozen virtual machine
The VMware Snapshot Provider service does not get installed when installing VMware Tools
Uninstalling and re-installing VMware Tools does not resolve this issue
This issue can occur on Windows 2003 and 2008 operating systems if the VMware Snapshot Provider does not get installed.
To work around this issue manually register the VMware Snapshot Provider:
Click Start > Run, type cmd, and click OK.
Enter these commands, in sequence:
regsvr32 "C:\Program Files\VMware\VMware Tools\Drivers\vss\VCBRequestor.dll"
regsvr32 "C:\Program Files\VMware\VMware Tools\Drivers\vss\VCBSnapshotProvider.dll"
"C:\Program Files\VMware\VMware Tools\COMREG.EXE" -register "C:\Program Files\VMware\VMware Tools\Drivers\vss\VCBSnapshotProvider.dll" "VMware Snapshot Provider" "vmvss" "VMware Snapshot Provider"
For more information read this article from VMware KB.