Hyper-V 2012 R2 - operation on computer {computername} failed

I just installed Hyper-V 2012 R2 but I am having trouble connecting to it using Windows 7 Hyper-V Manager. I keep getting "The operation on computer {computername} failed." error.

Lab Setup
•Hyper-V 2012 R2 core (no gui) (AMD Phenom II)
•Windows 7 Pro Hyper-V Manager (Intel Core2 Duo)
•Workgroup

Here is a list of changes I made.
 1.Same user on both machines.
 2.Same password.
 3.Same workgroup.
 4.Firewall rules.
 5.Static IP.
 6.Firewall state off.
 7.Host file edited with Hyper-V servername.

These changes work for Hyper-V 2012 and Windows 7 Hyper-V manager but has no affect on Hyper-V 2012 R2.

Do I need Windows 8 or 8.1 to connect to Hyper-V 2012 R2?