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RemoteFX - Very Slow Perofrmance in Windows 7

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We are trying to get RemoteFX working with some VM's in Hyper-V and I am running into an issue where Windows 7 is extremely slow. Below is my server setup:

Server:

Dell R815
Windows Server 2008 R2 Datacenter SP1 with updates installed
4 x AMD Opteron 6272 16 core
256GB RAM
ATI FirePro V5800 which does support RemoteFX (with updated drivers)
Roles Installed: Hyper-V and RDS (RemoteFX and Core Services)

Client:
VM in Hyper-V
RemoteFX enabled
Windows 7 SP1 with all updates installed
4GB Ram
4 processors
DXDIAG shows Microsoft RemoteFX Graphics Device - WDDM

When I RDP into the VM (RDP Performance set to LAN), the performance of everything is slow and choppy (opening windows, browsing web, youtube, even the login was slow). If I remove RemoteFX from the VM them the performance issues go away and all is good. I also noticed that when I enable RemoteFX on the VM ping times go form <1 ms to averaging about 150 ms. If I remove RemoteFX the ping time goes back to <1 ms.


Any ideas?



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