Missing NETLOGON and SYSVOL shares on EBS Management Server

I'm installing Essential Business Server 2008 Standard in a virtual environment (Hyper-V Server 2008 RC) for testing.  The Security Server installation stops during its Environment Checks, complaining that "The Installation Wizard cannot connect to the NETLOGON share on domin controller <EBS-MGMT.ourdomain.com>".  Sure enough, the SYSVOL and NETLOGON shares don't exist on <EBS-MGMT>.

I virtualized our SBS 2003 server using SCVMM and it appears to be running normally.  Planning and Preparation wizards completed without error, as did the Active Directory Schema update.

SBS 03 and EBS 08 will run virtually and use a Private network to keep them off the real LAN, though I did allow the EBS Management Server to connect to the Internet to download and install updates directly from Microsoft.  I also tried the installation without allowing updates.

Management Server installation completed with no errors.

C:\Windows\sysvol\sysvol exists on <EBS-MGMT> but is not shared.  Within that folder is a folder named <ourdomain.com>, but the icon for the <ourdomain.com> folder is the icon for a folder shortcut.  To be clear: it appears to be an actual folder and not a shortcut.

The NETLOGON and SYSVOL shares exist and are visible and accessible on the virtual SBS server.

Any suggestions for what might be wrong with our SBS machine or with the EBS installation?
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bcompConnect With a Mentor Author Commented:
Problem solved.  I ran the Planning Wizard on my live SBS server and finally paid attention to the warning about the File Replication Service:

Source: NtFrs
Event ID: 13568


The File Replication Service has detected that the replica set "DOMAIN SYSTEM VOLUME (SYSVOL SHARE)" is in JRNL_WRAP_ERROR.
 Replica set name is    : "DOMAIN SYSTEM VOLUME (SYSVOL SHARE)"
 Replica root path is   : "c:\winnt\sysvol\domain"
 Replica root volume is : "\\.\C:"
 A Replica set hits JRNL_WRAP_ERROR when the record that it is trying to read from the NTFS USN journal is not found.  This can occur because of one of the following reasons.
 [1] Volume "\\.\C:" has been formatted.
 [2] The NTFS USN journal on volume "\\.\C:" has been deleted.
 [3] The NTFS USN journal on volume "\\.\C:" has been truncated. Chkdsk can truncate the journal if it finds corrupt entries at the end of the journal.
 [4] File Replication Service was not running on this computer for a long time.
 [5] File Replication Service could not keep up with the rate of Disk IO activity on "\\.\C:".
 Setting the "Enable Journal Wrap Automatic Restore" registry parameter to 1 will cause the following recovery steps to be taken to automatically recover from this error state.
 [1] At the first poll, which will occur in 5 minutes, this computer will be deleted from the replica set. If you do not want to wait 5 minutes, then run "net stop ntfrs" followed by "net start ntfrs" to restart the File Replication Service.
 [2] At the poll following the deletion this computer will be re-added to the replica set. The re-addition will trigger a full tree sync for the replica set.
WARNING: During the recovery process data in the replica tree may be unavailable. You should reset the registry parameter described above to 0 to prevent automatic recovery from making the data unexpectedly unavailable if this error condition occurs again.
To change this registry parameter, run regedit.
Click on Start, Run and type regedit.
Click down the key path:
Double click on the value name
   "Enable Journal Wrap Automatic Restore"
and update the value.
If the value name is not present you may add it with the New->DWORD Value function under the Edit Menu item. Type the value name exactly as shown above.

I followed the instructions here: http://www.pcreview.co.uk/forums/thread-1448004.php, with the relevant portion pasted here:

1. Click "Start", and then click "Run".

2. In the "Open" box, type "cmd" (without the quotation marks) and then
press ENTER.

3. In the "Command" box, type "net stop ntfrs" (without the quotation

4. Click "Start", and then click "Run".

5. In the "Open" box, type "regedit" (without the quotation marks) and then
press ENTER.

6. Locate the following subkey in the registry:

/Restore\Process at Startup

7. In the right pane, double-click "BurFlags".

8. In the "Edit DWORD Value" dialog box, type "D2" (without the quotation
marks) and then click "OK".

9. Quit Registry Editor, and then switch to the "Command" box.

10. In the "Command" box, type "net start ntfrs" (without the quotation

11. Quit the "Command" box.

When the FRS service restarts, the following actions occur:

- The value for BurFlags registry key returns to 0.

- Files in the reinitialized FRS folders are moved to a

- The FRS database is rebuilt.

- The member performs an initial join of the replica set from an upstream
partner or from the computer that is specified in the Replica Set Parent
registry key if a parent has been specified for SYSVOL replica sets.

- The reinitialized computer performs a full replication of the affected
replica sets when the relevant replication schedule begins.

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