I am trying to install virtual server 2005r2 on a windows xp/sp2 quad-core
xeon system that is joined to an NT domain. The domain controller is
working fine and I am logged in as a domain admin, and an admin on the XP
system. I was getting the error:

The service principal name for the VMRC server could not be registered.
Automatic authentication will always use NTLM authentication. Error
0x8007054b - The specified domain either does not exist or could not be
contacted.

After doing some surfing I found that there was an SP1 for VS and installed
it. The virtual server would not start and I was getting the following
error in the event log:

The application-specific permission settings do not grant Local Launch
permission for the COM Server application with CLSID
{DA3111BC-1BD7-4884-A535-8470D36028F7}
to the user <my domain>\<my user>. This security permission can be
modified using the Component Services administrative tool.

I went into component services and gave my user the launch permission and
tried to start the virtual server service. It took a couple of minutes for
it to start, and when it did the following event log messages were
displayed:

The service principal name for the VMRC server could not be registered.
Automatic authentication will always use NTLM authentication. Error
0x8007054b - The specified domain either does not exist or could not be
contacted.

An error has occured during the creation of Service Connection points for
Virtual Server in Active Directory. Either a domain controller is not
available to complete the operation or there is a security problem accessing
the domain. This operation will be retried the next time the service starts.
Error 0x8007054b - The specified domain either does not exist or could not
be contacted.

Any ideas on how to get this running right? I have tried an
uninstall/reinstall cycle but that did not change anything. The virtual
server seems to be running, but it does not seem right that it would be
getting the above eventlog errors if everything was configured correctly.