I've just tried this again with a completely different server name and it still fails.
I've disabled all group policies relating to terminal services and Remote Apps.
I have tried installing IIS first and then RDS, updating the server first and then installing RDS or installing RDS first and then updating, ticking restart automaitcally or restarting manually afterwards, installing on physical hardware VS installing on a VM, disabling the firewall and bypassing TMG. I have tried everything I can think of yet still I am no further forward.
Could there be something left from RDS 2008 R2 which needs to be cleared from the domain somewhere?
Robin Wilson