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0xC004F074 with description "The Key Management Server (KMS) is unavailable" Windows 8.1 against 2008R2 KMS Host

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Hello all, we have the following situation

Windows 2008R2 server. Domain controller and KMS host

Clients are all KMS activated, windows 7/2008R2 servers. works great all activates. 

Now we want to test 8.1enterprise in the organisation. 

Installed following update on our 2008R2 server to extend support to 8.1

http://support.microsoft.com/kb/2885698/en-us

As far as I understand the article, adding this update should be enough to allow my windows 8.1 clients to activate against this server. Windows 7 continues to operate happily but win 8.1 throws

0xC004F074 with description "The Key Management Server (KMS) is unavailable"

does anyone know why this is failing? I verified that the client is checking in with the server before spitting this error, so the DNS side of things is all in order. a win8 client will check both of our KMS servers and it will return a response. the response is the above.

Very confusing and frustrating situation surrounding KMS activation for the new OSes. 


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