I’ve found this can occur when you attempt to deploy to vmfs w/ formatted blocks not equal to 1MB. This only applies to vmfs 3.33 and earlier. vmfs 5 or vSphere 5 formatted datastores should not see this issue as they are all formatted in 1MB block sizes.
Deploy OVF to a 1MB block sized datastore.
I’m wondering if deployment fails because the vmdk’s were originally created on 1MB datastore’s?