After a fresh install of Win7RC into VMwareI notice in WSUS 3.1.6001.65 that the client shows up in unassigned computers, however, as OS is showing Windows Vista Ultimate Edition.Do I need to activate some Windows 7 related stuff under products & classifications? Windows 7 Client or Windows 7 Server?

I have the same problem, two clients win Windows 7 RC1 showing up as Vista Ultimate in WSUS 3 Did you activate Windows 7 Client in WSUS?

No I did not. I think that the detection of the OS should be independent of what kind of updates are allowed. I still keep my Win7-RC test client in the group "Unassigned Computers" and do not move it to another group, since I don't know what happens, if Vista Updates are applied.

Mine says the same thing, it still works perfectly fine. It won't change until VMWare fully supports Windows 7, but until then it hasn't caused me any problems, my Windows 7 still functions as it should.