Following on from a previous post on this topic, I have finally (after around 6 weeks of trying) been able to find a resolution to the issue I previous posted about here.
It turns out this this was not actually an issue with VMM being slow installing VM Components. VMM was actually being slow at reading the drives on the host server. thankfully someone from Microsoft jumped onboard (thanks Hector Linares), and was able to confirm that VMM2008 does have this issue if any of the following conditions are met;
VIRTUAL MEDIA: If the host server has any virtual media such as a Dell DRAC or Virtual Floppy.
GPT DISK: If any drives in the host server are using GPT Partition table rather than MBR
UNINITIALIZED DISK: If any of the disks are not initialized.
OTHER MOUNTED VHDs: If a VHD has mounted incorrectly or not dismounted correctly.
In our situation the problem was actually related to GPT. The server has 3 drives, 2 set up as MBR and one set up as GPT. Converting the one GPT disk to MBR instantly fixed the problem, and VMM now creates VMs in under 10 seconds.
As a side note, GPT drives was introduced by MS in Server 2003 SP1, but is really being pushed with server 2008. See this article by MS.
Hopefully MS will have a fix soon, but as of Nov 2008 there is no way of converting an MBR disk to GPT without loosing the data.
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