Microsoft were kind enough to include the great new dynamic memory management in Hyper-V, which is capable of balancing VM (virtual machine) memory allocation dynamically, and it does so quite well. Unfortunately they failed to mention one specific requirement for this to work properly, all Server 2008 R2 standard hosts require SP1 to be installed on the VM itself.
So for 2008 R2 Standard hosts you must:
1. Upgrade the hypervisor (server 2008 r2 Hyper-V) server to service pack 1, reboot.
2. Upgrade the integration services in the VM, reboot.
3. Upgrade the VM to service pack 1, reboot.
This is particularly unusual because Windows Vista, Server 2003 R2 with SP2 and Server 2008 only need the integration services upgraded, think you might have dropped the ball briefly on that one Microsoft.
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