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VMM R2 Management console credentials / certificate? issue

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HI,

We have an issue with our VMM management console on a Windows 7 Enterprise (x64) machine joined to domain.com.

The console can connect the VMM server (vmmserver.domain.com) perfectly but when clicking on a VM in the console we get a popup saying:

"Your credentials did not work"
"The credentials that were used to connect to hypervserver1.domain.com did not work. Please enter new credentials"

When i enter my domain credentials again, i get another popup from RDP about a certificate problem:

"Remote Desktop Connection"
"A certification authority could not be contacted for authentication.
If you are using a Remote Desktop Gateway with a smart card, try connecting
to the remote computer using a password.
For assistance, contact your administrator or technical support"

After clicking "OK" (the only button available) i see "Virtual Machine Manager lost the connection to the virtual machine" and shortly after i get prompted again for credentials.

The funny thing is that if i authenticate using the local administrator credentials of hypervserver1.domain.com it goes through without a problem and i can see the cpu usage and desktop and connect to the VM just fine. Just to be clear, hypervserver1.domain.com is domain joined and we don't use smart cards. Also, all updates for hyper-v and scvmm are installed on all relevant machines through MS update. We have this issue when clicking on any VM located on any of our hyper-v servers.

All servers run windows 2008 R2 x64

i've tried the following:

Working off a suggestion i found on the web, adding the self-signed certificate of hypervserver1.domain.com (sc-vmm etc cert) to the correct local stores on the win7 machine. but this did not allow us to use our domain credentials, only local admin credentials work.

After searching the forum for similar issues most seemed to be resolved by this:

---

    * Run GPEDIT.MSC on the host
    * Expand Local Computer Policy > Computer Configuration > Administrative Templates > System > Credentials Delegation
    * Double-click Allow Saved Credentials with NTLM-only Server Authentication
    * Enable the policy
    * Add servers to the list by clicking the Show button and adding your hostname
    * Click OK twice and close Local Group Policy Editor

Now run GPUPDATE on the  host to apply the new settings.

Connect to one of the Hyper-V guests, enter your username and password, and check the Remember my credentials checkbox. Hyper-V will no longer prompt for credentials when connecting to any of the guest VMs.

--

I've added the following hostname : *hypervserver1.domain.com

While i check the box to save my credentials it just shows the RDP certificate problem popup if i use my domain credentials and i get a new prompt for credentials same as before. If i save the local administrator credentials then they get saved and used every time i click on a VM located on hypervserver.domain.com so i don't get prompted again but this is not what we want. We want to be able to connect using our domain creds without being prompted and preferably without having to save them.

i can't really find any useful information regarding that rdp certificate issue.

It's been driving us insane. Any ideas?

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