There's a lot of documentation out there on how to mount ISOs in Microsoft System Center Virtual Machine Manager for Hyper-V hosts.  It basically involves setting up permissions on the library shares so that the Hyper-V host machines can consume the share, then setting up constrained delegation in Active Directory.  Here's a link: http://blogs.technet.com/b/dutchpts/archive/2009/02/09/hyper-v-and-scvmm-2008-mounting-iso-s-from-a-network-share.aspx?wa=wsignin1.0

And here's the error…

Error (12700)
VMM cannot complete the Hyper-V operation on the HVSERVER1.domain.com server because of the error: 'NewServerHost' failed to add device 'Microsoft Virtual CD/DVD Disk'. (Virtual machine ID 119730D6-8939-4CB9-8456-7941F6925279)

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