Issues using VMRC+ to manage Virtual Server 2005 R2 SP1 on W2K8 EE 64bit

I have a site with a new 2008 Enterprise 64bit running Virtual Server 2005 R2 SP1 64bit where we can only get connected used VMRC+ as a domain admin user, they can connected through RDP and the VS admin website to have some control but it's not what their used to and of course we'd like it to work correctly.

The users have access to the directories containing the VM's and have modify rights
The W2K8 firewall is on but I'm able to connect from other member servers as admin so it's not that.
In server properties -> VS security the users have modify, view, remove and control. My test user has full & control

From DC as admin user VMRC works correclty
From same DC as test user with ful rights to VS get error message:
"Virtual Server returned 'access denied' (Code 0). You may have insufficient privileges to connect to Virtual Server"

I've not yet been able to stop/start VS as it's in use - it says it's perms but I believe I ahve set them correclty - so where have I missed or are there other tricks?

TIA
Tony

ashdownsolutionsAsked:
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maze-ukConnect With a Mentor Commented:
on the dev's blog, they mention a workaround, though I couldn't test myself...
http://blogs.technet.com/matthts/archive/2007/07/10/vmrcplus-and-authentication.aspx
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maze-ukCommented:
Verify the security in Program Files\Microsoft Virtual Server (or  virtual server install dir)
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ashdownsolutionsAuthor Commented:
Maze-uk - I have granted modify to domain users - it's not made a difference yet though I want to stop/start the service to ensure that it sees changes.

Thanks

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ashdownsolutionsAuthor Commented:
Clients running VMRC are able to connect so the issue is just affecting those running VMRC plus
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maze-ukCommented:
Are they using vista? what if they run vmrc+ 'as an administrator' ?
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ashdownsolutionsAuthor Commented:
The clients systems with the issues running VMRC+ are running XP Pro
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ashdownsolutionsAuthor Commented:
Thanks for your assistance, given the dire performance we've opted to jump to Hyper-V for most VM's
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