Just a note to self, based on the success from the info found at http://virtuallyhyper.com/2012/07/installing-kvm-as-a-virtual-machine-on-esxi5-with-bridged-networking/ (Which has a much more detailed description - so, if unsure, go and read there!)
1) ESXi 5.0 has the nested virtualization support but it is disabled by default.
SSH into the ESXi host and add the following line to /etc/vmware/config:
vhv.allow = TRUE
2) The guest config also needs edits to enable the nested virtualization. Add the below lines to the .vmx file:
monitor.virtual_mmu = "hardware" monitor.virtual_exec = "hardware" cpuid.1.ecx="----:----:----:----:----:----:--h-:----" cpuid.80000001.ecx.amd="----:----:----:----:----:----:----:-h--" cpuid.8000000a.eax.amd="hhhh:hhhh:hhhh:hhhh:hhhh:hhhh:hhhh:hhhh" cpuid.8000000a.ebx.amd="hhhh:hhhh:hhhh:hhhh:hhhh:hhhh:hhhh:hhhh" cpuid.8000000a.edx.amd="hhhh:hhhh:hhhh:hhhh:hhhh:hhhh:hhhh:hhhh" vcpu.hotadd = FALSE
After that the kvm-ok should be happy.
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