Ok so I just found this discussion here: http://communities.vmware.com/thread/447770 regarding 5.1 Update 1a hanging on regenerating certificate after rebooting. The user was able to get passed the hanging issue by manually generating the certificate from the command line.
While I was not having the issue with hanging that he was having, I was able to follow the process to manually generate the certificates. It worked great and my cert is now matching the hostname.
Not sure what is causing my issue, but this seems to have done the trick.