RDVGM Kernel Mode driver failure

I am using Windows Server 2012 R2 with VDI I get the following error in the event log of the VM frequently when logging in:

Log Name:      Microsoft-Windows-RemoteDesktopServices-vGPU-KModeDriver/Admin
Source:        Microsoft-Windows-RemoteDesktopServices-vGPU-KModeDriver
Date:          8/5/2014 2:28:22 PM
Event ID:      1
Task Category: None
Level:         Critical
Keywords:      
User:          SYSTEM
Computer:      "removed on purpose" 
Description:
The RDVGM kernel mode driver failed to start. The VM will not run with RemoteFX. If this issue persists, consider running with a lower number of monitors, resolutions, VMs, or increasing the GPU capacity.
Event Xml:
<Event xmlns="http://schemas.microsoft.com/win/2004/08/events/event">
  <System>
    <Provider Name="Microsoft-Windows-RemoteDesktopServices-vGPU-KModeDriver" Guid="{1B4F0E96-6876-49C8-BFBA-072DAE6543B3}" />
    <EventID>1</EventID>
    <Version>0</Version>
    <Level>1</Level>
    <Task>0</Task>
    <Opcode>0</Opcode>
    <Keywords>0x8000000000000000</Keywords>
    <TimeCreated SystemTime="2014-08-05T18:28:22.967205000Z" />
    <EventRecordID>1</EventRecordID>
    <Correlation />
    <Execution ProcessID="3024" ThreadID="3028" />
    <Channel>Microsoft-Windows-RemoteDesktopServices-vGPU-KModeDriver/Admin</Channel>
    <Computer>"removed"</Computer>
    <Security UserID="removed" />
  </System>
  <EventData>
    <Data Name="machineName">0x0</Data>
    <Data Name="vmId">0</Data>
  </EventData>
</Event>

This issue is causing the VM to be limited to a resolution of 1024x768, even when connected to a monitor capable of much higher. This displays a small square in the center of the screen with black border surrounding up to the monitor's default resolution. There are less than 20 VMs currently using this video card and Hyper-V states that less than 1.5GB of the 16GB of VRAM is being used. If I logout and back in several times, I will eventually get a desktop that is full sized and does not display these issues, but it is hit or miss most of the time. In the server I have an Nvidia K1 GPU running driver version 340.52, the latest available at this time. I am going to try using a different video driver today after close of business. Any suggestions would be appreciated.