Hyper-V Server

I'm setting up a Hyper-V Server 2008 R2. I'm having trouble with the virtual network. Option 8 in sconfig.cmd doesn't have a Virtual setting. If I connect to this server with Server Manager from a Server 2008 R2 Hyper-V machine and try to use the Hyper-V role to manage the virtual network, I get this message, "There was an error enumerating the machine's network switches. Make sure the Hyper-V networking service is installed and working properly." However, SC Query shows the HVBOOT service is running.

The HVS machine has two NICs, but when I use "netsh interface show interface" three NICs are displayed,

C:\>netsh interface show interface

Admin State State Type Interface Name
-------------------------------------------------------------------------
Enabled Connected Dedicated Local Area Connection
Enabled Connected Dedicated Local Area Connection 3
Enabled Disconnected Dedicated Local Area Connection 2

Can anyone help me here?

--
Tom Mason