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Remote Desktop IP virtualization for Windows 2008 R2 provisioned on ESX/ESXi and above fails to function (1038232)

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Symptoms

  • Remote Desktop IP virtualization does not work on Windows 2008 R2 64-bit installed on ESX 4.x and above.

    Note: Remote Desktop IP virtualization allows RDP sessions to a Windows 2008 R2 Terminal Server for allocation of a unique IP addresses. For more information, see the Microsoft Technet article
    Configure the Remote Desktop IP virtualization.

  • You cannot connect to the virtual IP assigned by the DHCP server within Windows 2008 R2 after enabling Virtual IP under the advanced option for RDP.
  • You are unable to reach the virtual IP generated by the DHCP server within the Windows guest operating system even after configuring the virtual switch/virtual machine port group with promiscuous mode.
  • You are able to reach the primary IP address assigned to the virtual machine.

Resolution

This is a known issue affecting Windows 2008 R2 64-bit managed by an ESX/ESXi host 4.x and later.
 
This issue is resolved in ESX/ESXi 4.0 P12 and ESX/ESXi 4.1 Update 3.
 
To download ESX/ESXi 4.0 P12 or ESX/ESXi 4.1 Update 3, see the VMware Download Center.

To workaround this issue, choose custom installation for installing VMware Tools and remove VMCI from the list of drivers that should be installed.

Alternatively, install IP virtualization and then install VMware Tools.

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