The server encountered an error while creating . No reason given.

If you have received the error:
“The server encountered an error while creating <virtual machine name>”

When creating a new virtual machine or trying to add a new virtual machine from existing VHD, where there is no reason given for the error other than “Creating the virtual machine failed”.

You will find that there is a lack of info on Google relating to this, as most users would have had a reason under Creating the virtual machine failed.

On top of that, the Event Log ID 16000 doesn’t tell you much other than “The locale specific resource for the desired message is not present”, which is also a generic message with no real reason.

My Fix:

In my case, I retraced some steps and noticed this issue occurred after joining the Hyper-V server to the domain. All virtual machines added before then worked fine, but could not add, import, mount any existing VHD disks.

It appears to be a GPO related problem. In my case, I setup an OU with no inheritance to fix the issue. The server once joined to the domain was dropped into the default “Computers” container.

More info can be found from Microsoft here with alternate fixes:


Exchange 2007/2010 Active Sync 0x85010004 or 85010014

Are you using the administrator account to test with activesync? You shouldn’t be!

If you are getting these messages in Event Log: User “domainnameadministrator” cannot synchronize their mobile phone with their mailbox because  Exchange ActiveSync has been disabled for this user.

And on your Windows Mobile phone have error code 0x85010004

It’s probably because you’re trying to use the administrator account to test with! This is not supported under Exchange 2007/2010 as the administrator does not inherit permissions in AD which makes it hard to give it activesync rights. Use a user’s account instead!

If this is not the case, then try one of two things (I found this normally happens when migrating from 2003 -> 2007/2010 – never seen it with a fresh install)

  1. Remove and recreate ActiveSync Directory (use Exchange Powershell)
    Remove-ActiveSyncVirtualDirectory -Identity “Microsoft-Server-ActiveSync (Default Web Site)”New-ActiveSyncVirtualDirectory -Server “xxx” -WebSiteName “Default Web Site” -ExternalURL “

    or for a single server deployment
    New-ActiveSyncVirtualDirectory -WebSiteName “Default Web Site” -ExternalURL “

  2. Use the powershell to give the user ActiveSync rights
    Set-CASMailbox -Identity <username> -ActiveSyncEnabled $true

    Also, more specifically for error 85010014
    Make sure you check that the user does Inherit permissions from the parent. Load up ADU&C – Make Sure View -> Advanced Options is ticked – Find User – Properties – Security – Advanced – Tick Allow Inheritable Permissions from the Parent… Ok all the way back out.

Other than that, make sure you check the obvious. Are you using SSL on both the Exchange and device side, or are you turning it off? It must match up.