Please verify my account I have posted a fix for the know Microsoft issue System image backup fails after you upgrade to Windows 8.1 or Windows Server 2012 R2 KB293029
I did want to put images in the post.
http://social.technet.microsoft.com/Forums/windowsserver/en-US/7373a7b8-01c8-4e2b-aaaa-513b7dad56f4/windows-server-2012-r2-vm-back-up-fails-with-insufficient-storage-available-to-create-either-the?forum=windowsbackup
Install WS2012 manually without the auto install which some VM environment's do for you.
Select the custom installation
Delete the partition which you want to install WS2012 on
Create a new 100 MB partition
On the unallocated space select new and it will create the partitions ws2012 requests
Delete the 100 MB partition created before
This will give you 100 MB of unallocated space at the beginning of the drive before the recovery partition
Go ahead and install WS2012
After the installation you will need to use a 3rd party partition program to extend the beginning of the recovery partition to use the unallocated space. (easeus partition manager, paragon partition manager, there are others available) we all have some of
these in our IT kit.
You will the see in your disk management a recovery partition of 400 MB
Backup will now work without the 'There is not enough disk space to create the volume shadow copy on the storage location' error
I have tried and tested this multiple times including bare metal recovery and it brings the drives back to the same state and working.
Stu Barber
