If you want to restore a file directly to the vm, you need to install the NBU client software in the vm.
What most users do in a case like this is to restore the file(s) to the Windows backup host and copy from there to the vm.
For whole vm restore, you need to follow steps as per NBU for VMware Admin Guide http://www.symantec.com/docs/DOC3663
See p. 120 onwards.
What did you choose in 'Recovery Destination dialog box' - Original location or Alternate location?
What did you choose in 'Recovery Options dialog box'?
Have you checked permissions as per Omar's post?
NetBackup status code 2817
Message: FlashBackup Windows policy restore error
Explanation: An error caused some or all of the files to fail.the restore operation.
RecommendedAction: Try the following possible solutions in the order presented:
■ Ensure that the client server list contains entries for the master server and
any media servers that can be used during a backup or restore.
■ Examine the status or the progress log on the client for messages on why the
restore failed. Also, check the All Log Entries report on the server.
■ Check ownership and permission on directories where files are restored.
■ Check the NetBackup tar log for additional failure information.
■ Correct the problems that you find and retry the restore.
All log entries: NBU GUI: Reports -> All log entries report
Progress log: BAR GUI : View Status tab, or else in ...Netbackup\logs\user_ops\<user-name>\logs
tar log folder does not exists by default - you need to create it under ...Netbackup\logs\.
If we have another look at Job details, it seems we will need VxMS log as well: 'VxMS initialization failed'. See 'Enabling VxMS logging' on p. 149 in the NBU for VMware manual (link above).
Permissions are important - files need to be written via ESX server to datastore.