When installing Microsoft System Center Virtual Machine Manager 2008 R2 SP1 on a Windows Server 2008 R2 server, I received the following error message. 
Virtual Machine Manager cannot process the request because an error occurred while authenticating SRV-SCVMM-01.water.intern. Possible causes are:
1) The specified user name or password are not valid.
2) The Service Principal Name (SPN) for the remote computer name and port does not exist.
3) The client and remote computers are in different domains and there is not a two-way full trust between the two domains. Log in by using an account on the same domain as the VMM server, or by using an account on a domain that has a two-way full trust with the domain of the VMM server, and then try the operation again. If this does not work, purge the Kerberos tickets on the VMM server by using kerbtray.exe, available at http://go.microsoft.com/fwlink/?LinkId=93709. Then, reset the SPN for SRV-SCVMM-01.water.intern by using setspn.exe available from http://go.microsoft.com/fwlink/?LinkId=93710. If this still does not fix the problem, make SRV-SCVMM-01.water.intern a member of a workgroup instead of a domain, restart the computer, rejoin the domain, and then try the operation again.
ID: 2917. Details: The network path was not found (0×80070035)
After following the instructions at both links, the problem still remained. Also, I was able to reproduce this issue flawlessly.
We found the solution, after 2 days of frustrating, in the naming convention of the server!
It seems that a name like “SRV-SCVMM-01” will result in the error, but “SRV-SCVMM” or “SCVMM” works just fine.
Lesson learned: When installing SCVMM, don’t use more then 1 dash in you server name!
I hope Microsoft reads this and will fix it in SCVMM 2008 R2 SP2 
I was surprised to see that, even after deletion and re-add of the disk, the disk remained with a status of “offline” and would not come online. To make it even stranger, the only option I saw when right-clicking on the disk in Disk Management, was “Help”.
Say what?! The user and server had no policies set on them; none whatsoever!
Open a command prompt and type “diskpart.exe”.
You will now receive a diskpart-prompt:
Diskpart>
Now type “san”. This will provide you with the current configured SAN policy:
So this means that the system was right… there was a policy configured… but I didn’t configure it, did I? Anyway, back to solving the issue.
In the diskpart-prompt, type “san policy=OnlineAll”.
This will result in the following message:
Diskpart successfully changed the SAN policy for the current operating system.
Disk ### Status Size Free Dyn Gpt
Disk 0 Online 30 GB 0 B
Disk 1 Offline 50 GB 1024 KB
In my case, disk 1 was offline so I typed “select disk 1” which provided:
Disk 1 is now the selected disk
Disk attributes cleared successfully.
This will give an output something like:
Current Read-only State : No
Read-only : No
Boot Disk : No
Pagefile Disk : No
Hibernation File Disk : No
Crashdump Disk : No
Clustered Disk : No
After the last check has been successful, type “online disk” to bring the disk online.
The disk should be available right away in Disk Management. If not the case, close and re-open Disk Management.
After I’ve found the solution I started searching on the internet. It seems that Microsoft has decided to change how disks are handled as of Windows Server 2008 Enterprise/DataCenter. The default SAN disk policy is now VDS_SP_OFFLINE_SHARED, with an exception for the boot-disk.
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