[#1]

Mozy is ignoring the Exclude Virtual Machines suggested ruleset even in this version.  There was a suggestion to delete the Exclude Virtual Machines ruleset and then add it back in from the suggested list for version 2.0.0.553.  I tried that for this version, but it is still backing up all of my VM files.  I'm currently in the process of backing up over 120 G of VM files which I don't want to backup.  

[#2]

What is the filename extension of these files? If you double click on the Exclude Virtual Machines backup set be sure that the filename extension is properly listed in there and that the folder it looks in also includes the location of the Virtual Machines, by default it's set to Documents folder.

[#3]

I am using the suggested File/Folder option labelled 'Exclude Virtual Machines'.  I noted that some previous entries indicated that one needed to remove the rule and then re-add the rule after the upgrade.  I have done this.  The rule is defined as:

Don't back up files inside: Anywhere; where any of the following are true: ( file extensions is vmdk, file extension is vmem, file extension is vmsn, file extension is vmss, file extension is hds).  Even with this rule in place, the process indicates that it is backing up files with extensions of vmdk and vmss.  You'll note, that my rule set is defined to exclude the VM files from Anywhere, not just the Documents folder.

[#4 · Accepted solution]

I went to try to create manual rules to solve this issue, and found that another new suggested rule had appeared (it wasn't there before).  This suggested rule was just called 'Virtual Machines'.  I added this new suggested rule and deleted the old suggested rule.  The rule looks exactly the same, but now when it recalculates the files to backup, I can tell that it is actually excluding the VM files -- this eliminates about 80 GB of backup for me.  Glad to have this finally working.  If anyone else runs into this error, I guess you should just add the rule manually.