Network isolation does not work on Windows Server 2008 R2 hosts if you are using Beta2 version of Visual Studio Team Lab Management. When you create an environment with network isolation on a 2008 R2 host and start it, you will get the following error:
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To create virtual environments in Microsoft Test and Lab Manager, you first need to have virtual machines in your project library share. Lab Management does not provide the functionality to create fresh virtual machines. You have to use Hyper-V or SCVMM
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