You can not logon because the logon method you are using is not allowed on this computer

On Server 2008 : Run gpedit.msc then add user/group (RDP is a good choice) to Windows Setting->Security Settings->Local Policies->User Rights Assignments->Allow log on through Terminal Services.

Linux on Hyper-V: Networking not working

Linux on Hyper-V: When creating the Virtual Machine use Legacy Network Adapter.