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Well, the title says it all. If the host you're trying to install SCVMM on has a name that contains "-SCVMM-" in upper case letters, setup fails with Error 257.
Example: MUC-SCVMM-1
Resolution: Use a slightly different name, like "MUC-SCVMMR2-1" or "MUC-SCVmm-1",
The reason is that the uppercase string "-SCVMM-" is used internally for host cummincation by SCVMM.
Cheers
Robert