This error is what you get from Citrix Provisioning Server (PVS) when you’ve configured a VLAN inside a template within System Center Virtual Machine Manager (SCVMM)
I’ve found one solution and one workaround for this issue.
Solution
Install all Microsoft and Citrix updates applicable for the SCVMM, XenDesktop and PVS on their respective servers. Keep in mind that the SCVMM Management Console is also installed on the XenDesktop servers so it also has to be updated.
Workaround
Remove the VLAN setting from the template in SCVMM, create the virtual machines and run the following PowerShell command on a server which has the SCVMM Management Console installed (where the IP number is that of the SCVMM server):
get-vmmserver 10.0.12.130
get-vm | get-virtualnetworkadapter | set-virtualnetworkadapter -vlanenabled $true -VLANID 172
Big fat note
This command will set the VLANID to all offline machines (and will fail for those that are online)! In my case the Hyper-V environment is only used for the VDI guests which all needed the same VLANID, so it worked out just fine…
Categories: Citrix, Microsoft, PowerShell, Virtualization
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 
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