This is caused by a Microsoft known issue: Volume Shadow Copy Service (VSS) cannot create a volume snapshot even when VSS has sufficient memory space.
To resolve this problem, apply the Microsoft patch <http://support.microsoft.com/kb/940239/>
If the problem persists, use Live Chat to contact Arcserve support. Live Chat lets you optimize intelligent conversation between you and the Technical Support team, allowing you to address your concerns and questions immediately, while still maintaining access to the product.
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