Host Cluster is overcommitted in System Center Essentials 2010

I am receiving "Host Cluster X is overcommitted" whenever I try to create a new VM.  I have two Server 2008 R2 Hyper-V servers in the cluster, each with 8GB of RAM.  Neither machine seems to be consuming much memory.  I have tried creating VM's from 2GB of RAM down to 512MB of RAM.

I have 5 VMs currently on it.  

VM1: 2GB
VM2 - VM5:  512MB

VM2 - VM5 are currently off.  I have shut down VM1 as well and get the same message (I even reduced the memory on VM1 to 512MB).  

Calculating it all up including the VM's that are off, we are only looking at 1.5GB to 4GB at most being used.  

Also the Host reserves I moved to 0 to attempt to make sure that didn't have anything to do with this, and it didn't help.
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Chris ClosAsked:
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broy55Connect With a Mentor Commented:
Make sure your VM's are only using 1 CPU and the VM reserver set to 0, and I would put most of the VM's on Host 2. Another option would be to install Server 2008 SP1 RC. This will give you the flexibility to use Dynamic memory. I typically don't use SCE even though I have it installed on a VM. I just use Failover Cluster Manager and the Hyper-V manager.

My companies current configuration is:

2 x Dell Poweredge R815 with 4 Opterons with 12 cores (48 Cores total) with 64 GB memory. I have'nt run into anything these servers can't handle.  
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broy55Commented:
Did you spread your VM accross the clusters? Are the VM's all running on one host? That maybe the reason why.
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Chris ClosAuthor Commented:
I have moved and changed them around... It doesn't have any affect...
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broy55Commented:
How many CPU's are on your hosts? Cores per CPU?
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Chris ClosAuthor Commented:
Host 1: Xeon E8200 (2 Cores)
Host 2: Xeon X3430 (4 Cores)

I can launch all the VM's up and run with no problems
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Chris ClosAuthor Commented:
Any reason you don't use SCE?  I'm in an evaluation mode right now.. trying to decide if I want to go full swing.  

I have had great success just using Hyper-V manager and Failover Cluster Manager as well... One other time SCE was not cooperating and I was able to do everything I needed there (even a bit more powerful, since this is where I needed to set the processor compatibility).
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Chris ClosAuthor Commented:
An all my VMs are just 1 proc and I have done the VM reserve.  I just can't seem to create a new VM in SCE (I can however go to town in HyperV)
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broy55Commented:
we have sce because we plan to switch our desktops to vdi, which will help manage all those vm's. If you have less than a dozen vm's, you don't sce.
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Chris ClosAuthor Commented:
I'm skipping SCE..
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