Hyper-V "Could not initialize"

Posted on 2014-02-10
Last Modified: 2014-11-12
Hello Experts!

We have a new SBS 2011 server and have installed the Hyper-V role to run a virtual Server 2003 computer.  Adding the role and setting up the VM works just fine, but when I start the machine I get this error box:

"Virtual Machine Connection"

The application encountered an error while attempting to change the state of "VM-PC".

"VM-PC" could not initialize.

I have contacted the support team for the computer manufacturer and have enabled the proper virtualization settings in the BIOS.  I also tried removing and reinstalling the Hyper-V role at the request of the support team.  That did not help.  But, I found a nice tool from Gibson Research ( that tests to see if the virtualization settings are right on the PC.  When I removed the Hyper-V role, I used SecurAble ( it said that everything was good (see website for tool and screen shots).  After I reinstall the Hyper-V role, it comes up and the last option for Harware Virtualization goes to No even though it was Yes before I installed Hyper-V.

Any ideas?

Thanks!  :)
Question by:tganus
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LVL 22

Expert Comment

by:Haresh Nikumbh
ID: 39847347
check if below hotfix is installed
LVL 39

Assisted Solution

by:Philip Elder
Philip Elder earned 500 total points
ID: 39847367
You _cannot_ run the Hyper-V role on SBS 2011 Standard. It totally messes with the entire networking stack, SBS Wizards, and more!

LVL 120
ID: 39847383
After you install Hyper-V, hardware virtualisation does change to No!

This is normal behaviour.

Does you server support Hyper-V ?

It seems that it's having issues with Intel-VT (hardware virtualisation), and hence will not power on the VMs.
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LVL 22

Expert Comment

by:David Atkin
ID: 39847427
As per Phillips comment.  Virtualisation is a big no no on SBS.

Get another machine, install ESXi and run the Server 2003 VM from there.  And remove the Hyper-V role from the SBS.

Author Comment

ID: 39847651
OK.  Thanks for the information about SBS 2011 and Hyper-V.  I'm very new to the VMWare stuff.  Can someone provide me a link to what I need to download and is it free?
LVL 22

Expert Comment

by:David Atkin
ID: 39847695
ESXi is free yes.

A guide can be found here:
LVL 120
ID: 39847751
All links and setup information included....

see my EE Article, Step by Step Tutorial Instructions with Screenshots

Part 1: HOW TO: Install and Configure VMware vSphere Hypervisor 5.1 (ESXi 5.1)

Part 2: HOW TO: Connect to the VMware vSphere Hypervisor 5.1 (ESXi 5.1) using the vSphere Client

Part 3: HOW TO: Create an ISO CD-ROM/DVD-ROM image (*.iso), and MD5 checksum signature, for use with VMware vSphere Hypervisor 5.1 (ESXi 5.1)

Part 4: HOW TO: Upload an ISO CD-ROM/DVD-ROM image to a VMware datastore for use with VMware vSphere Hypervisor 5.1 (ESXi 5.1) using the vSphere Client, and checking its MD5 checksum signature is correct.

Part 5: HOW TO: Enable SSH Remote Access on a VMware vSphere Hypervisor 5.1 (ESXi 5.1)

Part 6: HOW TO: Create your first Linux Virtual Machine on a VMware vSphere Hypervisor 5.1 (ESXi 5.1) Host Server

Part 7: HOW TO: Create your first Windows Virtual Machine on a VMware vSphere Hypervisor 5.1 (ESXi 5.1) Host Server

Part 8: HOW TO: Install VMware Tools for Windows on a VMware Windows virtual machine on a VMware vSphere Hypervisor 5.1 (ESXi 5.1) Host Server

Part 9: HOW TO: Install VMware Tools for Linux on a VMware Linux virtual machine on a VMware vSphere Hypervisor 5.1 (ESXi 5.1) Host Server

Part 10: HOW TO: Backup (Export) and Restore (Import) virtual machines to VMware vSphere Hypervisor 5.1 for FREE

Part 11: HOW TO: Suppress Configuration Issues System logs on host are stored on non-persistent storage

Part 12: HOW TO: Configure and Replace the SSL Certificate on a VMware vSphere Hypervisor 5.1 (ESXi 5.1) Host Server

Author Comment

ID: 39847967
Thanks for all the help!

It looks like the download I obtained "VMware vSphere Hypervisor 5.5" and the .iso I made and the install guide from VMware point to booting to the disc I downloaded and then overwriting the hard drive to load ESXi.

This poses a problem as I already have SBS 2011 installed on the server and I was right in the middle of a migration when the customer threw me a curveball requiring the VM.

Is there an option for me that runs "inside" of SBS 2011 like Hyper-V would?
LVL 39

Accepted Solution

Philip Elder earned 500 total points
ID: 39848010
No. No Hypervisor can be run on SBS given the network stack setup it has.

You need a second box as already mentioned.


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