Can't Create Service Due to Insufficient Host Resources?

I have created a simple, single-tier Service Template. If I now create a Service from this Service Template, I get an error 23737. ("The
deployment configuration for VM with name %Name; cannot be placed on the host group or cloud that it targets. More detailed information can be found by getting star ratings for the target host group or cloud.Ensure
that sufficient host resources are available on the host group or cloud that this virtual machine configuration targets by resolving any issues found while rating the virtual machine and try the operation again.")
My Cloud's capacity is set to all unlimited. The hosts (it's a three-host cluster) have some virtual machines running but I don't think they're overcommited. 
What could be the problem here? 
Thanks in advance!

Here is the step by step.
select template
configure deployment
Name and target Host Group
Complete Settings
Refresh Preview
Select individual VM of Service (not the tier, but the VM within the tier).
Select the Ratings button in the ribbon (step 6 lights this up).
Note the Rating Explanation tab
Brian Ehlert
http://ITProctology.blogspot.com
Learn. Apply. Repeat.
Thanks so much for breaking it down for me!
Now I get "The host does not support guest IP change detection and dynamic Network Virtualization policies."
Is that because it's Windows 2008? You wish you knew that from the start, right? :D

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