Terminal Server 2003 VM in Hyper-V running CPU at 100%

I have a Terminal Server as a VM in Hyper-V. The OS is Server 2003 R2 x64.
It has 14GB of Memory Assigned to it and 4 processors.
The host has 2 Quad core Xeon processors with I believe hyper threading as they both show 8 logical processors.
The host only has only one other VM with 4GB of Memory assigned and one processor.

The processor in the VM keeps running a 100% with only 10 to 12 users logged in.
At the same time its only using a couple of GBs of memory.

I read somewhere that Server 2003 can only have 2 processors assigned. Is that the Problem?
Thanks
jkellyg78Asked:
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Darius GhassemConnect With a Mentor Commented:
That would cause a problem likes this
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Darius GhassemCommented:
On the Host and VMs go to properties of network card click Advanced then disable any Offloads listed. Restart machine
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jkellyg78Author Commented:
I tried that and it Still gets stuck at 100% with only 6 user logged on..
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Darius GhassemCommented:
Do you have one network card for this virtual network? Or are you using network card for both host management and VMs
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Svet PaperovIT ManagerCommented:
Did you install the integration services from Hyper-V on the virtual machine? I presume you did.

The problem is may be not related to Hyper-V. However, there are some performance counters related to Hyper-V that you should look at. Here is a copy of my notes:

Performance Monitoring: Create a User Defined Data Collector Set Hyper-V Server Data Collector Set and add the counters Hyper-V Hypervisor Logical Processor (_Total)\* and Hyper-V Hypervisor Virtual Processor (_Total)\*. Define Stop Condition: 1 hour (to run for).
According to Performance Tuning Guidelines for Windows Server 2008 R2 (current version is at: http://www.microsoft.com/whdc/system/sysperf/Perf_tun_srv-R2.mspx) and Measuring Performance on Hyper-V (an online help for BizTalk server at: http://msdn.microsoft.com/en-us/library/cc768535%28BTS.10%29.aspx) the CPU usage of the physical machine should always be measured by using the Hyper-V Hypervisor Logical Processor counter. The thresholds to evaluate overall processor utilization of the Hyper-V environment using the \Hyper-V Hypervisor Logical Processor (_Total)\% Total Run Time performance monitor counter:
•      Less than 60% consumed = Healthy
•      60% - 89% consumed = Monitor or Caution
•      90% - 100% consumed = Critical, performance will be adversely affected

If everything on the host looks OK check some performance counters in your VM or use the Process Monitor to see which process halts at 100%.

I hope this helps  
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jkellyg78Author Commented:
I discovered that one of the Hard Drives for the Host failed. Its configured in a RAID 5 with 3 drives. I'm assuming that has a great deal to do with the problem. What do you think?
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jkellyg78Author Commented:
Thanks I will update when new HD has arrived and been installed.
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jkellyg78Author Commented:
This solution was part of the problem. So it definitally helped the other part though was a HD failure on the RAID.
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