Summary from KB Article:
When you open the Virtual Server Administration Website in Microsoft Virtual Server 2005, you receive the following error message: Could not connect to Virtual Server. Access was denied.You can specify an alternate virtual server below.
When you open the Virtual Server Administration Website in Microsoft Virtual Server 2005, you receive the following error message:
I blogged about this problem when I first started running Virtual Server under Windows Server 2003 SP1 Release Candidate, and there have been many instances on the Microsoft internal discussion lists about people having similar problems. There is now a new KB article on support.microsoft.com providing the latest information on how to resolve this problem.
I believe there's a mistake in that kb article, it says the problem only occurs if you install W2K3SP1RC1 or XPSP2 _after_ Virtual Server 2005, i ran into exactly the same problem with a Win2003 Ent. Ed. SP1RC1 integrated.
To make it work on W2K3SP1RC1, I had to follow the instructions in the KB, but add the "Auhtenticated Users" and remove the "deny everyone" rule from the activation rights as described in the article.