I have two Server 2008 R2 Datacenter systems setup in a failover cluster using CSV with the Hyper-V role added. I recently setup System Center Virtual Machine Manager R2 to manage this Hyper-V cluster. When I try to "migrate" a running Guest VM using VMM I get "Error 10698 Virtual Machine XXXX could not be live migrated to Virtual Machine Host YYYY using this cluster configuration. 0x80004005." When I stop the Guest VM and migrate it works without errors. Strangely enough when I use the Failover Cluster Management tool on one of the nodes both Quick and Live Migration work without any problems.
Also, when using VMM and clicking "Migrate" I don't get to choose between Quick or Live. VMM seems to be choosing for me and I can't see any way to change it. I am not even sure what kind of migration it is using on a stopped VM because it just says "Cluster" in the Transfer Type column.
Another strange behavior is that even though both of the nodes in my failover cluster are exactly the same I get an error message that a Guest VM can not be migrated because it is "using processor specific features" not supported on the other node. Checking the "allow migration to a virtual machine host with a different processor" check box on the Guest VM settings clears up this issue but I would still like to know what is going on here.