SCVMM ISO Attach Issues

I have an SCVMM environment which i use in my test lab to manage 2 hosts.
I have it installed on the primary host (host1) and i can function correctly.

Today i tried to install a new server 2008 x64 SP2 guest. The media required was not available on the library share so i added a new library (host2) as it has a USB drive with all of my install media on it.
This appeared to go OK until i added the ISO file to the VM and i got this error.

Error (12700)
VMM cannot complete the Hyper-V operation on the Host1.domain.local server because of the error: ‘Server 2008 x64′ failed to add device ‘Microsoft Virtual CD/DVD Disk’. (Virtual machine ID DF8EB02A-223B-44AD-8EBE-D254F54BBFDA)

‘Server 2008 x64′: User account does not have permission required to open attachment ‘\host2.domain.localInstallationsMicrosoftServerServer 2008en_windows_server_2008_datacenter_enterprise_standard_sp2_x64_dvd_342336.iso’. Error: ‘General access denied error’ (0×80070005). (Virtual machine ID DF8EB02A-223B-44AD-8EBE-D254F54BBFDA)
(Unknown error (0×8001))

Recommended Action
Resolve the issue in Hyper-V and then try the operation again.

Uncheck the box “Share image file instead of copying it.”

You can not directly share an ISO that is stored in a library on SCVMM.
This is by design and is a security measure.

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