It also did say in the article "to add 10 percent to IT salaries for workers having Microsoft SQL Server database skills ". So that leads me to believe...

I have not tried applying R2 Service Pack 2 yet. I am noticing that the login failures across the other instances are showing up just by calling the Get-Item powershell...

That's what is frustrating. This is not a cluster nor a virtual server. Just multiple 2008 R2 instances running on a standalone server.

This issue is still open. I have tried both fixes mentioned in the link and neither corrected my issue.

Anyone ever get resolution on this error?

Did this ever get resolved. I'm experiencing the exact same thing.