This is on Server 2008 R2 sp1, using hyper-v manager (not scvmm). I am able to able successfully create a new VM is I take the defaults and let hyper-v manager save the machine to the c: drive. However, if I choose to create it on a second drive (S: in this case, which is a iSCSI partition, connected as a physical drive using iSCSI initiator, not mapped, but the local administrators group has full rights to it), the creation fails with the error:
New Virtual Machine Wizard
The server encountered an error while creating <name I gave it>
The operation failed.
That's all, no additional details, no error number, and nothing in the event log. It seems this is a permissions issue, since it works on the C: drive, but not sure how to fix it. I used procmon to watch for errors, but nothing I saw appears to be helpful. I see the directories being created on S:, and the sid.xml being created on S:, then the sid.xml is deleted and the folder structure is left, and the error message appears. I'm doing this on the hyper-v server, running hyper-v manager as an administrator (account is in local administrator group).
Any help is greatly appreciated.