On Windows Server 2008 R2, trying to start a VM named 'TFS' in Hyper-V Manager displays the following message:
Hyper-V Manager
An error occurred while attempting to start the selected virtual machine(s).
'TFS' could not initialize.
Failed to create partition: Insufficient system resources exist to complete the requested service. (0x800705AA)
'TFS' could not initialize. (Virtual machine ID 252EAC02-59DB-4BE5-BB9A-296B5BA4BC78)
Failed to create partition: Insufficient system resources exist to complete the requested service. (0x800705AA)
Unlike ESX, where you can over specify RAM, Hyper-V allocates the RAM you set to a VM, so if you have a host with 4GB of RAM, and 2 VM's running with 2GB each, you cannot start another. ESX would let you start another and try and spread the available RAM between them, but you end up with resource issues if there is not enough.
Reducing the RAM required by this VM seems to have solved the problem.
Strange that the error message didn't specifically mention RAM as the cause of the error.