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On failover cluster running on windows 2008 R2 server , when a live migration of a Virtual Machine from one node to the other is performed the following error may be generated:

There was an error checking for virtual machine compatibility on the target node

The virtual machine 'GuestName' is not compatible with the target node 'Win2008R2-2.contoso.com'.
Hyper-V has detected that:
The virtual machine 'GuestName' is not compatible with physical computer 'Win2008R2-2'. (Virtual machine ID D0734038-F3OD-4FEC-A36F-99AD 14665885)

The virtual machine 'GuestName' is currently using an Intel processor, but physical computer 'Win2008R2-2’ has an Unknown processor. A running or saved virtual machine cannot be migrated to a physical computer that has a processor from a different vendor. However, you can move the virtual machine to this node if you shut down the virtual machine. (Virtual machine ID D0734038-F3OD-IFEC-A36F-99AD 14665885)

Option one:

1. Verify hardware-assisted virtualization setting are enabled in the bios on node we are trying to migrate to:
   a) Create a new Virtual machince on Node and store Virtual Machine Configuration file on the local hard drive
   (Do Not store in Virtual Machine Configuration file Custer Shared Volume Folder)
   b) Start this Virtual machine to verify that we are able to start this virtual machine succesfully
   

Option two:

1. Remove the Hyper-V role and reboot the server
2. Add the Hyper-V role
   

It has been observed that when an image with Hyper-V role enabled is deployed, there are certain Bios updates that may disable the hardware-assisted virtualization.

Windows Server 2008 R2 & Microsoft Hyper-V Server 2008 R2 - Hyper-V Live Migration Overview & Architecture:
http://www.microsoft.com/downloads/details.aspx?FamilyID=fdd083c6-3fc7-470b-8569-7e6a19fb0fdf&displaylang=en

Hyper-V: Using Live Migration with Cluster Shared Volumes in Windows Server 2008 R2:
http://technet.microsoft.com/en-us/library/dd446679(WS.10).aspx

NOTE: If the error you are receiving is similiar to the above but references "The virtual machine "guestName" is using processor-specific features not support on physical computer 'ClusternodeName' then refer to the following document on enabling Processor Compatibility mode:

http://download.microsoft.com/download/F/2/1/F2146213-4AC0-4C50-B69A-12428FF0B077/VM%20processor%20compatibility%20mode.doc