Known Issue - 'Insufficient system resources exist to complete the requested service.

Symptoms: 

"ERROR: Exception on file '\\.\harddiskvolumeshadowcopy1' : 'Insufficient system resources exist to complete the requested service.'

Explanation: 

Microsoft Windows Server has insufficient internal memory resources to create the system image.

Solution: 

Expand Windows internal memory pool bychanging the system settings.

 

  1.     Click Start, click Run, type regedit in the Open box, and then click OK.
  2.     Locate and then click the following registry subkey:
  3.     HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Session Manager\Memory Management
  4.     On the Edit menu, point to New, and then click DWORD Value.
  5.     Type PoolUsageMaximum as the entry name, and then press ENTER.
  6.     Right-click PoolUsageMaximum, and then click Modify.
  7.     Click Decimal.
  8.     In the Value data box, type 60, and then click OK.
  9.     Quit Registry Editor.
  10.     Restart your computer.
Notes: 

Please, consult Microsoft KB Article http://support.microsoft.com/kb/304101/en-us