3.6.0 MxDB for SQL Server Installation and Administration Guide (5697-7088, December 2007)

Chapter 7: Troubleshooting 104
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NOTE: When Matrix Server is installed, it can create the appropriate
registry key automatically if desired.
Error When Creating a Virtual SQL Server
Because the installation of MSCS (Microsoft Cluster Services) modifies
key system files, you must completely remove MSCS before creating a
Virtual SQL Server. If you do not uninstall MSCS, you will see the
following error when adding a Virtual SQL Server:
See the following Microsoft Knowledge Base articles for more
information about removing MSCS.
Windows Server 2003:
http://support.microsoft.com/kb/282227
Windows 2000 Advanced Server:
http://support.microsoft.com/kb/257928
Failure to Virtualize a SQL Instance
If a SQL instance has the service account set to a local user or
administrator, an attempt to virtualize the instance will fail with this
message from the operating system:
A member could not be added to or removed from the local
group because the member does not exist
To correct this problem, you will need to set the service account for the
instance to either a domain user or LocalSystem on all nodes. When using
SQL Server Configuration Manager to change the user for the service
account, be sure to type the new user name using NTLM-style credentials
(DOMAIN\user). You can also browse for the appropriate user account.