When I was working with my Hyper V Server creating a new virtual machine, I encountered this error message saying that the "operation has failed, general access denied error. 0x80070005" So basically, I already had a clue by just looking the error message that this has something to do with the NTFS permissions. So here's what I did to solve this. 1. Go to the root drive and go to the NTFS Permissions tab 2. Now, click "Edit" and click "Add". We're going to add a user here in order to fix the issue. 3. Then add in the "Authenticated Users" group and make sure that it has the "List folder contents & read" permission. Then click "Apply" and "OK" for the changes to take effect. 4. Then go back to your Hyper V console and try creating a new virtual machine again and see your VM live in action. VM for Windows Server 2008 R2 VM for Windows Server 2012 Still having problems creating VMs on your Hyper V server? Leave a comment and I'll get back at you. :)