same scenario with 3.1 engine si27.4: 
The host upgraded successfully and becomes up, however it takes ~6 minutes.
There are some error messages in the engine.log worth take a look at them [1]:
==============================================================================
2013-03-12 05:22:00,109 ERROR [org.ovirt.engine.core.bll.InstallerMessages] (NioProcessor-3) Installation of Host. Received illegal XML from Host. Message: org.ovirt.engine.core.compat.CompatException: Element type "BSTRAP" must be followed by either attribute specifications, ">" or "/>"., Exception: {2}
...
2013-03-12 05:23:41,864 ERROR [org.ovirt.engine.core.bll.RegisterVdsQuery] (ajp-/127.0.0.1:8702-7) Query execution failed due to invalid inputs. VDS_STATUS_NOT_VALID_FOR_UPDATE



attached:
[1] engine.log.3.1
[2] engine.log.3.2

Created attachment 709031 [details]
engine.log.3.1

Created attachment 709032 [details]
engine.log.3.2

Created attachment 714385 [details]
engine.log.3.2.sf11

Upgrade fails on 3.2 sf11.
attached engine.log 3.2 sf11

Hello Tareq,

Indeed, from logs I can see:
2013-03-22 10:53:36,176 INFO  [org.ovirt.engine.core.bll.OVirtNodeUpgrade] (OVirtNodeUpgrade) update from host 10.35.102.79: <BSTRAP component='RHEL_INSTALL' status='OK'message='vdsm daemon stopped for upgrade process!'/>
2013-03-22 10:53:36,187 ERROR [org.ovirt.engine.core.bll.InstallerMessages] (OVirtNodeUpgrade) Installation of Host. Received illegal XML from Host. Message: <BSTRAP component='RHEL_INSTALL' status='OK'message='vdsm daemon stopped for upgrade process!'/>: org.ovirt.engine.core.compat.CompatException: Element type "BSTRAP" must be followed by either attribute specifications, ">" or "/>".

However, which RHEV-H have you used in your tests? 

The last one which I can see from the rhev-devel available is:
RHEVH-ADV 3.2 Beta 1 (6.4-20130321.0) which contain vdsm-4.10.2-11.0.el6ev.
Unfortunately, this image doesn't contain the fix for this bug.

vdsm-4.10.2-12.0 [1] should resolve this issue.
I am moving back to modified state, fell free to move it back to assigned in case this version still doesn't resolve the problem.

[1] https://brewweb.devel.redhat.com/buildinfo?buildID=263212

Thanks
Douglas

I used rhev-hypervisor6-6.4-20130318.1.el6_4
The engine version was 3.2 sf11.

In case the engine version is 3.1.z, the upgrade succeed and the state is up. [see comment 1]

Thanks Tareq, indeed  rhev-hypervisor6-6.4-20130318.1.el6_4 contains vdsm-4.10.2-1.8.el6ev which doesn't have the fix.

*** Bug 928699 has been marked as a duplicate of this bug. ***

*** Bug 928589 has been marked as a duplicate of this bug. ***

This bug is currently attached to errata RHBA-2012:14332. If this change is not to be documented in the text for this errata please either remove it from the errata, set the requires_doc_text flag to minus (-), or leave a "Doc Text" value of "--no tech note required" if you do not have permission to alter the flag.

Otherwise to aid in the development of relevant and accurate release documentation, please fill out the "Doc Text" field above with these four (4) pieces of information:

* Cause: What actions or circumstances cause this bug to present.

* Consequence: What happens when the bug presents.

* Fix: What was done to fix the bug.

* Result: What now happens when the actions or circumstances above occur. (NB: this is not the same as 'the bug doesn't present anymore')

Once filled out, please set the "Doc Type" field to the appropriate value for the type of change made and submit your edits to the bug.

For further details on the Cause, Consequence, Fix, Result format please refer to:

https://bugzilla.redhat.com/page.cgi?id=fields.html#cf_release_notes

Thanks in advance.

Created attachment 740330 [details]
engine.log.sf14

After return on steps that described in comment 6 of bug https://bugzilla.redhat.com/show_bug.cgi?id=950271, was successes to do upgrade from version rhev-hypervisor-advanced-6.4-20130328.0.el6ev to rhev-hypervisor-advanced-6.4-20130425.0.el6ev(vdsm-4.10.2-13.0.el6ev -> vdsm-4.10.2-16.0.el6ev) without any error message. Version of rhevm sf14.

rhev-hypervisor-6.4-20130501.0.auto468 with vdsm-4.10.2-19.0.el6ev

Hi Douglas,

As you comment#26, is this means the scenario that upgrade rhevh 6.4.z with vdsm3.1 to the rhevh 6.4.z with vdsm3.2 which newer than vdsm-4.10.2-12.0 will not be supported on RHEV-M SF 3.1 cluster? 

rhev-hypervisor-6.4-20130318.1.el6_4 with vdsm-4.10.2-1.8.el6ev.x86_64
rhev-hypervisor-6.4-20130501.0.auto468/rhev-hypervisor6-6.4-20130501.0.auto635.el6_4 with vdsm-4.10.2-19.0.el6ev
 	

RHEV-H 6.4.z with vdsm3.1 upgrade to RHEV-H 6.4.z with vdsm3.1 latest on RHEV-M SI 3.1 cluster. PASS
RHEV-H 6.4.z with vdsm3.1 upgrade to RHEV-H 6.4.z with vdsm3.2 latest on RHEV-M SF 3.1 cluster. FAILED

host-deploy: ignore malformed messages received from host

CURRENT STATUS

Legacy vdsm-upgrade reports its status via semi-XML format. Unfortunately
there was a bug in vdsm-upgrade in which the XML that was sent had been
malformed.

As a result the upgrade of the ovirt-node succeeded, but host was marked
as installed failed.

WORKAROUND

After upgrade from ovirt-node with this bug, move host to maintain once and
then activate.

NEW IMPLEMENTATION

Do not fail installation if malformed data is received, issue a warning.

IMPLICATIONS

Upgrade will not fail if a severe error occurred at host side, for
example python exception.

SUGGESTION

Not to apply this patch, but provide a known issues paragraph in
documentation instead.

Bug-Url: https://bugzilla.redhat.com/show_bug.cgi?id=920671
Change-Id: I05262d92dfbb76de75a66a32c83998ad0361c62d
Signed-off-by: Alon Bar-Lev <alonbl>

*** Bug 978235 has been marked as a duplicate of this bug. ***

*** Bug 974368 has been marked as a duplicate of this bug. ***

*** Bug 978235 has been marked as a duplicate of this bug. ***

*** Bug 1019794 has been marked as a duplicate of this bug. ***

*** Bug 1434728 has been marked as a duplicate of this bug. ***