I’ve just been struggling to add a virtual machine back into the Virtual Server administration website (after I changed the search path). Each time I tried, Virtual Server highlighted the .VMC file as a known configuration file but then reported that:
The virtual machine configuration could not be added. A configuration with this name already exists.
Luckily enough, I found Mohammed Adenwala’s problem adding a virtual machine in Virtual Server 2005 blog post which described my problem exactly. After deleting C:\Documents and Settings\All Users\Application Data\Microsoft\Virtual Server\Virtual Machines\virtualmachinename.lnk I was able to add the virtual machine to the administration website and run it.