High CPU on VM after snapshot fails

vCenter 5.0.0 Build  455964

Guest: Windows 2003 Server R2

This is our standby server for BES 5.

This server was migrated from VirtualCenter 2.5 a month ago, and VM Tools was updated at that time.

There is frequently a problem on this server when creating a snapshot.

These two processes peg the CPU at 100% combined:

svchost.exe - 60-80% CPU

inetinfo.exe - 20-40% CPU

vSphere shows this error for the vm:

Status: An error occured while quiescing the virtual machine. See the virtual machine's event log for details.

Error stack: Timed out while quiescing the virtual machine.

Nothing related to this appears in the vm's event log.

This has happened four times since it was migrated. Half of the snapshots since the migration were successful and caused no issues. We have been rebooting the vm to get CPU usage back down.

Any ideas what may be causing this?

Thank you.