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New-Folder ESXi 5 Essentials not working

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I am new to PowerCLI and am trying to do some inventory documentation.   Before I begin my inventory, I want to move specific VMs into Folders.   I tried to do this through PowerCLI using the following cmdlet:

 

New-Folder -Name "Greg" -Location (Get-Datacenter)[0]

 

It returns with the following:

 

 

New-Folder : 1/15/2013 8:03:58 AM    New-Folder        The operation is not supported on the object.
At line:1 char:1
+ New-Folder -Name "Greg" -Location (Get-Datacenter)[0]
+ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
    + CategoryInfo          : NotSpecified: (:) [New-Folder], NotSupported
    + FullyQualifiedErrorId : Client20_InventoryServiceImpl_NewFolder_ViError,VMware.VimAutomation.ViCore.Cmdlets.Commands.NewFolder
This system was a free ESXi system but was recently licensed to Essentials but not connected to a vCenter.  I would think this should work.  Is this an error with my code or the system not being connected to vCenter?
Thanks
Greg

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