I have about 50 sites with server 2008 SP2 32 or 64 Bit deployments. This issues seems to affect both. After a undetermined amount of time after a reboot (days, weeks, can't say for sure, Random), trying to go into disk management or share and storage management locally or remotely, I get "Virtual Disk Service Initialization Failed" in the MMC and can't view either of these applications.
The only way to get rid of this error is to restart the actual server. When this issue occurs, the virtual disk service is running.
Has anyone seen this before? The only hit I get on MS or Google is about clustering. We are not using clustering at all. This has to be happening to someone else, or we are the only suckers to have deployed Server 2008, whereas everyone else waiting to R2, sigh.
This has been happening for months and no updates to date have solved this problem.