I found the answer to my problem. But just a word on caution...make sure you have checked all the verified boxes and cleared all entries if you have any in the bottom window or turning this on will cause you to loose connection to those vSphere servers!
Wednesday, August 25, 2010
FAULT TOLERANCE ERROR: FLAG NOT SET
Last year is when I prepared for the future with first separation of my vCenter and SQL Database, and then upgrade of vCenter to 64bit the manual way. Apparently as I learned today, through this upgrade a SSL setting was not set like it is when you do a clean install of vCenter. This will prevent FT from working and kick out an error.