I wanted to post this for two reasons, 1) in hopes that a SolarWinds rep will see it and issue a fix and 2) so that others out there hopefully will not go through the frustration that I did.
If you run ESXi 4.0 and do an update to 4.1 you will notice a new error popping up in your syslog server: Hostd: pam_env(system-auth-generic:setcred): Unable to open config file: /etc/security/pam_env.conf: No such file or directory
VMware support was of little to no help and ended up telling me to do a clean install on the host after a couple of hours of trouble shooting, which after doing so produced the exact same behavior and now I have wasted all that time configuring a new host from the ground up.
Shortly after finishing the clean install and noticing the error persisting, I changed the polling interval in NPM for the host and noticed that the frequency of the error logging changed also.
With that in mind I decided under the recommendation of a colleague to just touch the files on the host to see if it would stop the error logging since all functionality seemed to be fine anyway. I ended up having to touch /etc/security/pam_env.conf and /etc/environment.
Once those two files existed, the error logging stopped and things seem to be running just fine.
Hope this helps some one at some point.
-Landon