sure thing, just verified this does not happen with a full install of R2 only the core one.

I have Starwind installed on a Server 2008 R2 core install, and whenever I start moving files around on the server that starwind is on the memory usage quickly goes up to 100%, I stop and restart the service and everything is fine again, back down to 22%. Is this a known issue? Am I not supposed to ...

it is working fine for me on Server Core 2008 R2. This link can help you http://projectdream.org/wordpress/2009/07/31/hyper-v-server-2008-r2-live-migration-failover-clustering/ You have to make sure the MPIO is installed and enabled on your machines that connect to the targets if not then clustering...