Yesterday i was also having a similar problem, i hope someone can answer us.
but i blame my readynas and thought it is not compatible at some level.
1. Do we use the new "Tag" feature in 5.5 and I assume that is only available in the Web Client?
yes, this can only be managed by web client.
2. Is there any difference between the "Tag" and older methods for configuring storage profiles?
TAG is in 5.5 and SP is 5.0
3. What is this vm home that is not compliant?
someone please help
4. Can we do this only from VI client?
Taging only from webclient