Conversion failed with error message "FAILED: The VSS snapshots cannot be stored because there is not enough space"

Hi All,

I have a Laptop with

     6 GB RAM,

     300 GB HDD, 

     2 CPU (1 socket and 2 cores)

     Windows 7 64 bit OS.

I am having external HDD (2TB capacity with 460 GB free space) which will have the destination folder for the VM.

When I try to convert this using  VMware converter standalone I am getting this following error.

"FAILED: The VSS snapshots cannot be stored because there is not enough space on the source volumes or because the source machine does not have any NTFS volumes. Error code: 2147754783 (0x8004231F)."

I have attached the error log for your reference.

Thanks in advance to all for helping to overcome this issue.

Cheers

Kumar RAMASAMY