Ok we have established that we are unable to telnet into port 3389 on the machine in question, not sure why this is or what I can do about this.
I tried changing the RDP port, still could not telnet into the changed port with the windows firewall off.
Have gone back to the Hyper V machine for now, I noticed that I had the tick mark for IPV6 ticked off on the hyper v machine, not sure if that would have made a big difference or not.
Any suggestions for converting it again, as it needs to run under Esxi, would be appreciated.