SBS 2011 Volume Shadow Copy causing server backup to fail?

Hello,

We recently ran into an issue where our exchange server stopped receiving email due to low disk space on the C drive. I did some poking around and found that VSS was taking up huge amounts of space. So, I disabled it on the C drive, and then re-enabled it with a smaller quota. However now, our server backup does not want to work. The following errors are displayed when we try to run the backup:


The Following Event ID's are triggered:

Log Name:      Application
Source:        ESE
Date:          11/30/2011 10:03:20 AM
Event ID:      2007
Task Category: ShadowCopy
Level:         Error
Keywords:      Classic
User:          N/A
Computer:      AGM-SRV.accurateglassandmirror.local
Description:
Information Store (8280) Shadow copy instance 1 aborted.

For more information, click http://www.microsoft.com/contentredirect.asp.
Event Xml:
<Event xmlns="http://schemas.microsoft.com/win/2004/08/events/event">
  <System>
    <Provider Name="ESE" />
    <EventID Qualifiers="0">2007</EventID>
    <Level>2</Level>
    <Task>16</Task>
    <Keywords>0x80000000000000</Keywords>
    <TimeCreated SystemTime="2011-11-30T15:03:20.000000000Z" />
    <EventRecordID>113312</EventRecordID>
    <Channel>Application</Channel>
    <Computer>AGM-SRV.accurateglassandmirror.local</Computer>
    <Security />
  </System>
  <EventData>
    <Data>Information Store</Data>
    <Data>8280</Data>
    <Data>
    </Data>
    <Data>1</Data>
  </EventData>
</Event>
-----------------------------------------------------
Log Name:      Application
Source:        Microsoft-Windows-Backup
Date:          11/30/2011 10:03:20 AM
Event ID:      521
Task Category: None
Level:         Error
Keywords:      
User:          SYSTEM
Computer:      AGM-SRV.accurateglassandmirror.local
Description:
The backup operation that started at '¿2011¿-¿11¿-¿30T15:02:28.842000000Z' has failed because the Volume Shadow Copy Service operation to create a shadow copy of the volumes being backed up failed with following error code '2155348129'. Please review the event details for a solution, and then rerun the backup operation once the issue is resolved.
Event Xml:
<Event xmlns="http://schemas.microsoft.com/win/2004/08/events/event">
  <System>
    <Provider Name="Microsoft-Windows-Backup" Guid="{1DB28F2E-8F80-4027-8C5A-A11F7F10F62D}" />
    <EventID>521</EventID>
    <Version>0</Version>
    <Level>2</Level>
    <Task>0</Task>
    <Opcode>0</Opcode>
    <Keywords>0x8000000000000000</Keywords>
    <TimeCreated SystemTime="2011-11-30T15:03:20.826072000Z" />
    <EventRecordID>113314</EventRecordID>
    <Correlation />
    <Execution ProcessID="15072" ThreadID="6012" />
    <Channel>Application</Channel>
    <Computer>AGM-SRV.accurateglassandmirror.local</Computer>
    <Security UserID="S-1-5-18" />
  </System>
  <EventData>
    <Data Name="BackupTime">2011-11-30T15:02:28.842000000Z</Data>
    <Data Name="ErrorCode">2155348129</Data>
    <Data Name="ErrorMessage">%%2155348129</Data>
  </EventData>
</Event>
---------------------------------------------------------
Log Name:      Application
Source:        Microsoft-SharePoint Products-SharePoint Foundation
Date:          11/30/2011 10:05:00 AM
Event ID:      6398
Task Category: Timer
Level:         Critical
Keywords:      
User:          accurateglassan\spfarm
Computer:      AGM-SRV.accurateglassandmirror.local
Description:
The Execute method of job definition Microsoft.SharePoint.Search.Administration.SPSearchJobDefinition (ID 3bbc2701-ca33-49c6-bbf7-cb6129d67614) threw an exception. More information is included below.

The device is not ready.  
Event Xml:
<Event xmlns="http://schemas.microsoft.com/win/2004/08/events/event">
  <System>
    <Provider Name="Microsoft-SharePoint Products-SharePoint Foundation" Guid="{6FB7E0CD-52E7-47DD-997A-241563931FC2}" />
    <EventID>6398</EventID>
    <Version>14</Version>
    <Level>1</Level>
    <Task>12</Task>
    <Opcode>0</Opcode>
    <Keywords>0x4000000000000000</Keywords>
    <TimeCreated SystemTime="2011-11-30T15:05:00.534072000Z" />
    <EventRecordID>113315</EventRecordID>
    <Correlation ActivityID="{94CE4E43-CB11-470A-90CB-EEDB44531239}" />
    <Execution ProcessID="12596" ThreadID="12004" />
    <Channel>Application</Channel>
    <Computer>AGM-SRV.accurateglassandmirror.local</Computer>
    <Security UserID="S-1-5-21-847726691-1697868861-806467491-2659" />
  </System>
  <EventData>
    <Data Name="string0">Microsoft.SharePoint.Search.Administration.SPSearchJobDefinition</Data>
    <Data Name="string1">3bbc2701-ca33-49c6-bbf7-cb6129d67614</Data>
    <Data Name="string2">The device is not ready.  </Data>
  </EventData>
</Event>
---------------------------------------------------

Any suggestions?

Thank you!