I installed (upgraded) from Vista to 7 a few months ago. I try to create a backup and in the first try I only allocated 10 Gig. The backup failed due to: "The disk that you backups are being saved doesn't have enough free space". Since than I increased
the second (D:/) disk to 25 Gig and get the same error message. Looks like the backup program does not read the actual disk space "again". I tried reformatting the second disk, I tried changing the drive letter, I tried changing the drive name, I don't know
how to delete the backup settings or to make the backup program "see" more storage. If there are any ways to do this, it may help.
Maybe your system backup is over 25 Gb. You may add an external USB larger space disk to back up for testing. Be sure that your operation is system backup rather than creating system image.
Another suggestion is that you’d better choose what you want to back up rather than system recommended.
Here is the official introduction of backup and restore feature.
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