By default, System Center Virtual Machine Manager 2008 installs the Virtual Machine Manager Service to run under the LocalSystem account. This is a configuration that runs just fine, but what if, for security reasons, you want to use a domain account
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Read the complete post at http://blogs.technet.com/scvmm/archive/2009/07/01/how-to-configure-vmm-2008-to-run-with-a-domain-service-account-using-a-remote-sql-database.aspx