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Hyper-V Problems Installing a VM. RDP Error?

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I'm new to Hyper-V, but not virtualisation and I'm tasked with setting up a virtual application server under Hyper-V.

All seems pretty straight forward, set up VM, pointed at an ISO to install 2008 R2 server and powered it up. I can see the server booting in the preview window so I double click on the preview to try to connect so I can run through its installation;

Remote Desktop Connection;

An authentication error has occurred (Code: 0x507)

Remote Computer: <fqdn of host server>

OK, what does the event log say;

Event ID: 12480 '<virtual machine>' failure in machine remoting system. Error: 'The client and server cannot communicate, because they do not possess a common algorithm.' (0x80090331). (Virtual machine<VM MAC>)

So this seems to be an issue with RDP not communicating with Hyper-V, even though the VM isn't installed yet?

Any suggestions/ ideas on how to progress?


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