The guest resources you have allocated are very small. They are even below the supported minimum.
2 CPUs (Either 2 Sockets or 1-Socket/2 Cores)
RAM: absolute bare minimum is 2Gig. Highly recommend 4Gig.
HDD: 80Gig minimum for lab. (Support requires minimum of 200Gig for any machine in production)
Disable Caching: One of the biggest bottlenecks in VM is Disk/IO. With caching turned on, a LOT of disk I/O occurs.
Thin provisioning is fine if caching is disabled.
If not, pre-allocate disk.
DNS: hard to say. If you are NOT doing authentication, you can point to an ISP DNS servers. If you are doing authentication, it should be an AD DNS server and not an ISP DNS.
As long as the latency to it is minimal in either case, you should be ok.
I run my lab with with these settings and it's ok for 4-5 clients:
thank you very much for your answer.
I will copy your settings.
I was just about to post a similar question. Our lab is running on ESXi 5. The guest is 2 CPUs, 8GB ram and 50GB disk. Web cache is turned off.
The issue for us is on file downloads. The downlaod seems ok, but the AV scan is tremendously slow. So slow that something seems wrong and I'm actually a bit afraid to roll MWG7 out into production.
On a scan, both CPUs hit 50% and stay there for a good 400 seconds when downloading this test file -
We've tried other size files with the similar results. All take way to long to scan.