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8.1 Update 1 Can't set up Virtual Machine.

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8.1 Update 1 Can't set up Virtual Machine.

MikeC34
Am trying to set-up a virtual machine on 64bit Surface Pro 2 system using Hyper-V Manager but after clicking Finish to create a default VM the New VM Wizard displays a window stating:

The Virtual Machine Management service encountered an error while configuring the hard disk on virtual machine New Virtual Machine.
Failed to create the virtual hard disk.
The system failed to create
C:\users\public\documents\\Hyper-V\Virtual Hard Discs\New Virtual Machine.vhdx

Previously, before setting the machine back to factory settings, I had got past this point creating a WindowsXP VM but encountered other problems causing me to go back to factory settings. Then, whilst applying 8.1 updates I found I had now got 8.1 Update 1, moving on to setting up VM I got this error.

Having almost zero experience beyond XP some advice would be greatly appreciated.
I see two options, one to go back to a USB system image 8.1 upgrade 1 or
revert to 8.1 recovery factory image.
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HAL 9000 Moderator
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Not all versions support XP Mode or Virtual Mode and even then if you have Pro or Higher you need hardware that can support this and I'm not sure that any Surface is capable of doing that.

Col

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MikeC34
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I have been following Greg Shultz articles about "Instal Windows XP in Windows 8 Client Hyper-V dated October 11 2012 and his other one Create a test machine in Windows 8. These outline the Surface spec required namely must have 64bit CPU's, incorporate Second Level Address Translation (SLAT) and have at least 4GB memory. My Surface Pro 2 meets the spec. and I have activated Hyper-V client. However there have been Window changes 8 to 8.1 to 8.1 Update 1 which change what is displayed in Greg's articles and, possibly, may now work differently. I think a major point is that whilst using the Virtual Switch Manager the network connection goes offline and I am failing to identify what static changes may have been overwritten and what I need to re-apply to restore connectivity.
There is a warning box displayed but no explanation as to how one should resets the changes.