Vista - New template on SCVMM2008 problem

Hello,

I am trying to create a template (a sysprep image) using SCVMM 2008.

I created a server and deployed it to a host.
I turned it off
Used SCVMM option to create a template by right clicking on it but i get the
error:

Error 10687: To create a template from a virtual machine, the virtual
machines must have a least one virtual disk attached.

I don't understand this error. The Windows Server 2008 Virtual Machine
(Hyper-v) that i am trying to convert to an image, has a VHD. The entire OS
is on it!


also, I've tried going to "New Template', selected the option to convert an
existing VHD, but it does not show up in the library?

What am I doing wrong?