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WSB failing on Server 2008 running Exchange 2010

Yes our Root issue is we need to run a backup to truncate our Exchange logs.

Currently we use vRanger to backup the entire VM but this does not truncate our logs.
The Exchange Logs files are currently going to a separate Drive on this Server.
The Drive is 250GB and slowly is reducing in size available by 1.5GB per day.
I have tried setting up a VSS Full WSB backup to truncate the logs and fix this issue but when i do i get an error from WSB that states.

"There is not enough disk space to create the volume shadow copy on the storage location. make sure that, for all volumes to be backed up, the minimum required disk space for shadow copy creation is available. For the optimal experience, we recommend at least one gigabyte of free disk space on each volume being backed up. detailed error: there is not enough space on the disk."

There is currently 40GB of free space on the C: Drive and E: Drive, both drives that are included in the backup.

The network location where this backup is to be held has 683GB of free storage.

If someone please could help me figure out why i get an error stating this is not enough free space.

C: Drive is 100GB and E: Drive is 250GB (allocated space), the only things located on the E: Drive are Exchange log Files.

Let me know if you need any additional details
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If you need the logs, then I would try backing up to a mounted drive (add another disk via VMWare), ortherwise, you could enable circular logging, then restart the information store, wait till the old logs have been deleted, disable cicular logging, restart the information store and then run a backup after your logs have been flushed.

vRanger should flush the logs, so I would open a support ticker with Quest.

Agentless  implementation of Microsoft Volume Shadow Copy Service (VSS) ensures application-consistent snapshots for critical transactional servers with the option to truncate application logs
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I still would like some insight into why my WSB is failing when the reasons it states for failing are false.

I did put in a support call with Quest last night and waiting for a call back, they should help me setup my VM backup that has Exchange 2010 on it to truncate those logs.
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the command line tools will not prevent a backup, Symantec on the other hand....
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removing the command lines tools did make the backup go successfully, I did uninstall the symantec remote agent but i did so after a successful WSB backup. If that is not the norm I can't explain that. However besides the windows backup i have setup vRanger to truncate logs via VSS so my situation is resolved.
at least you have a working backup :-)
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Never fully resolved the Windows Server Backup but via Quest-vRanger software i was able to setup VSS backups that truncated my exchange logs.