We just published this one today so you’ll want to check this out if you’re seeing errors sharing an ISO in SCVMM:
When using the System Center Virtual Machine Manager (SCVMM) 2008 R2 console to share an ISO file during new virtual machine creation and placing it in the Hyper-v hosts, the following error may occur:
Virtualization platform on host XXXXXXX does not support shared DVD ISO images.
Remove the shared ISO image from hardware profile or select a different host
You must attach the shared ISO image file to the virtual machine after you create the virtual machine. You cannot attach the file during virtual machine creation.
1. First Place the VM’s on the Hyper-V hosts.
2. Then attached the ISO file using the following steps:
To configure a virtual machine to share an ISO image:
1. In Virtual Machines view of the VMM Administrator Console, right-click the virtual machine, and then click Properties.
2. Click the Hardware Configuration tab.
3. In the left pane, under Bus Configuration, click IDE devices, and then select the IDE device that is being used to capture the ISO image file.
4. Under Capture mode, select Existing image file, and then use the Browse button to select the shared ISO image file in the VMM library that you want to use.
5. To share the image file from the VMM library instead of attaching a copy of the image to the virtual machine, select the Share image file instead of copying it check box.
6. Click on OK.