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TF259137: The following account does not have sufficient permissions to complete the operation: domain\user. The following permissions are needed to perform this operation: Create.

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When importing virtual machine in MTM Lab Center you may encounter error message below:

TF259137: The following account does not have sufficient permissions to complete the operation: domain\user. The following permissions are needed to perform this operation: Create.

From what I know there is no UI that would allow the TFS admin to grant the necessary privileges related to library management. To fix this, do:

  1. Open a console where tfslabconfig.exe. In VS 2013 with MTM installed, it is located in C:\Program Files\Microsoft Visual Studio 12.0\Common7\IDE.
  2. Run the following command:
    3. TfsLabConfig Permissions /collection:http://[TFSMachineName]:8080/TFS/DefaultCollection /user:domain\user /allow:create,Read,ManageLocation,Write,edit,delete,start,stop,ManagePermissions,ManageChildPermissions,Pause,ManageSnapshots
Of course you have to replace [TFSMachineName] with the name of your TFS Server and this has to be run by user with TFS admin rights. You also have to change DefaultCollection and domain\user.

References:
http://social.msdn.microsoft.com/Forums/vstudio/en-US/0f2a3f3b-48a0-4bd8-b03a-c8a4ebf03da2/import-vm-template-in-lab-center

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