Problems with BranchCache™ feature of Windows 2008 R2

I have been trying out some of the Windows 2008 R2 features and a colleague and I decided to try out the BranchCache feature. This feature is meant to be a WAN optimisation strategy for windows 7 and windows 2008 R2. Frequently used HTTP and SMB content in branch offices are cached locally and subsequent requests for the same content are served from the local cache.

There are 2 ways BranchCache can be implemented:

1. Storing the cache content on a dedicated BranchCache Server located in the branch office and

2. Peer content requests where a BranchCache server at the Main office redirects a branch office request for content previously delivered to the branch office to the contents location which is usually another workers Windows 7 PC.

At least that's the theory.

Whilst trying to setup a Lab for a BranchCache deployment, the process bombs out when trying to create the BranchCache-enabled shared network folder as shown in the diagram below:

The specific error states that: Flags for the SMB shared folder cannot be configured. The specified service does not exist as an installed service

This is confusing as the BranchCache Service is certainly installed as a service and started as shown below:

Another key part of the process is to create hashes of the files in the shared folder using a tool called Hashgen.exe

I have been unable to find this tool on my install of Windows 2008 R2 and Google doesn't throw up any related answers.

It would be interesting to know if anyone else has come across this and how they fixed or resolved it.