I believe it's permission related, we didn't have as much resistance in doing that here, but I think the reason is this: > In order to use PowerShell, an > administrator must be assigned the > SharePoint_Shell_Access role on any > databases against which PowerShell > will be used. For example, to perform > tasks that read or manipulate data in > the configuration database, an > administrator must have the > SharePoint_Shell_Access role for the > configuration database. Likewise, to > work with a specific site collection, > the admin must have the > SharePoint_Shell_Access role for the > appropriate content database. This is the location I found this in awhile ago: http://www.sharepointpromag.com/article/sharepoint/t-is-a-privilege-to-powershell