diff --git a/client/WEB-INF/classes/resources/messages.properties b/client/WEB-INF/classes/resources/messages.properties
index 1011cf6b9a6..afdc0519dea 100644
--- a/client/WEB-INF/classes/resources/messages.properties
+++ b/client/WEB-INF/classes/resources/messages.properties
@@ -304,6 +304,8 @@ label.network.domain=Network Domain
 label.nfs.storage=NFS Storage
 label.secondary.storage=Secondary Storage
 label.security.group=Security Group
+label.security.groups=Security Groups
+label.no.security.groups=No Available Security Groups
 label.ingress.rule=Ingress Rule
 label.add.security.group=Add Security Group
 label.add.ingress.rule=Add Ingress Rule
@@ -702,6 +704,7 @@ message.snapshot.schedule=Your snapshot schedule is currently set to
 message.add.volume=Please fill in the following data to add a new volume.
 message.attach.volume=Please fill in the following data to attach a new volume. If you are attaching a disk volume to a Windows based virtual machine, you will need to reboot the instance to see the attached disk.
 message.add.pod=Add a new pod for zone <b><span id="add_pod_zone_name"></span></b>
+message.no.network.support=Your selected hypervisor, vSphere, does not have any additional network features.  Please continue to step 5.
 
 
 #Errors
diff --git a/ui/jsp/instance.jsp b/ui/jsp/instance.jsp
index 38ebd4926f9..bffee56959a 100644
--- a/ui/jsp/instance.jsp
+++ b/ui/jsp/instance.jsp
@@ -679,7 +679,7 @@ dictionary = {
 						</div>
 						<div id="for_basic_zone" style="display:none">		
 						    <h3><fmt:message key="label.security.groups"/></h3>		
-						    <span id="not_available_message" style="display:none">security group is currently not available</span>				    
+						    <span id="not_available_message" style="display:none"><fmt:message key="label.no.security.groups"/></span>				    
 						    <ol id="security_group_section" style="display:none">						        
 						        <li>
 						            <select id="security_group_dropdown" class="multiple" multiple="multiple" size="15">
@@ -690,6 +690,9 @@ dictionary = {
 						        </li>
 						    </ol>						      
 						</div>
+						<div id="for_no_network_support" style="display:none">		
+						    <span id="not_available_message"><fmt:message key="message.no.network.support"/></span>				    
+						</div>
                     </div>
                 </div>
                 <div class="vmpopup_navigationpanel">
diff --git a/ui/scripts/cloud.core.instance.js b/ui/scripts/cloud.core.instance.js
index 4d01f75321c..9ae2215ace9 100644
--- a/ui/scripts/cloud.core.instance.js
+++ b/ui/scripts/cloud.core.instance.js
@@ -649,7 +649,8 @@ function initVMWizard() {
 	    $template.attr("id", ("vmWizardTemplate_"+jsonObj.id));
 	    $template.data("templateId", jsonObj.id);
 	    $template.data("templateType", templateType);
-	    $template.data("templateName", fromdb(jsonObj.displaytext));
+	    $template.data("templateName", fromdb(jsonObj.displaytext));
+		$template.data("hypervisor", jsonObj.hypervisor);
 	
         $template.find("#icon").removeClass().addClass(getIconForOS(jsonObj.ostypename));
         $template.find("#name").text(fromdb(jsonObj.displaytext));	
@@ -858,6 +859,7 @@ function initVMWizard() {
 			if (zoneObj.networktype == "Advanced") {			    
 			    $thisPopup.find("#step4").find("#for_advanced_zone").show();
 			    $thisPopup.find("#step4").find("#for_basic_zone").hide();	
+				$thisPopup.find("#step4").find("#for_no_network_support").hide();
 			    		    
 				var networkName = "Virtual Network";
 				var networkDesc = "A dedicated virtualized network for your account.  The broadcast domain is contained within a VLAN and all public network access is routed out by a virtual router.";
@@ -1013,17 +1015,18 @@ function initVMWizard() {
 				});
 			} 
 			else {  // Basic Network
-			    $thisPopup.find("#step4").find("#for_basic_zone").show();			    
 			    $thisPopup.find("#step4").find("#for_advanced_zone").hide();	
-			    if(getDirectAttachSecurityGroupsEnabled() == "true" && $selectedVmWizardTemplate.data("hypervisor") != "VmWare" ) {			        
+			    if(getDirectAttachSecurityGroupsEnabled() == "true" && $selectedVmWizardTemplate.data("hypervisor") != "VMware" ) {		
+					$thisPopup.find("#step4").find("#for_basic_zone").show();
+					$thisPopup.find("#step4").find("#for_no_network_support").hide();
 			        $thisPopup.find("#step4").find("#security_group_section").show();
 			        $thisPopup.find("#step4").find("#not_available_message").hide();	
 				    $thisPopup.find("#step5").find("#wizard_review_network").text("Basic Network");
 				}
 				else {
-				    $thisPopup.find("#step4").find("#not_available_message").show();		
-			        $thisPopup.find("#step4").find("#security_group_section").hide();	
-			        $thisPopup.find("#step5").find("#wizard_review_network").text("");			   
+					$thisPopup.find("#step4").find("#for_basic_zone").hide();
+					$thisPopup.find("#step4").find("#for_no_network_support").show();						
+			        $thisPopup.find("#step5").find("#wizard_review_network").text("Basic Network");			   
 				}
 			}
 	    }