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Managing ESXi 4 VM Problems

I've got an ESXi 4.0 Host with one VM on it. I'm currently monitoring the host and the VM without any problem. When I view the ESX node, it shows the 1 VM running on it, but when I click the VM name, it asks me if I want to manage this node. If I say "yes", it takes me through the wizard to add a new node. If I try to validate the SNMP credentials, it will not work unless I change the hostname to the IP address of the server. There is no DNS issue though. Once, the node is added, using only the IP, NPM still acts as if the VM is not managed.

Any ideas?