SCCM 2012 R2 Task Sequence: Image capture wizard has failed with the error code (0x80070070)

I'm trying to capture an image of a x64 bit machine using CD capture media. I was able to use OSD to deploy a basic image to a machine to build it. However I am unable to capture the image from the reference machine. Can someone help me troubleshoot the issue? My first guess is that I'm low on hard drive space. I just want to be sure before I go rearranging partitions. I have provided the SMSTS log below. If there are any other logs that are needed please let me know. And also please provide a hint where they might be located as I am still learning how to troubleshoot SCCM. SCCM Server = SCCM 2012 R2. OS being captured is Windows 7 x64.

==============================[ TSMBootStrap.exe ]==============================      TSMBootstrap      10/14/2015 1:12:28 PM      948 (0x03B4)
Command line: TSMBootstrap.exe /env:FullOS       TSMBootstrap      10/14/2015 1:12:28 PM      948 (0x03B4)
Executing from Media in Full OS      TSMBootstrap      10/14/2015 1:12:29 PM      948 (0x03B4)
Verifying Media Layout.      TSMBootstrap      10/14/2015 1:12:30 PM      948 (0x03B4)
MediaType = FullMedia      TSMBootstrap      10/14/2015 1:12:30 PM      948 (0x03B4)
PasswordRequired = false      TSMBootstrap      10/14/2015 1:12:30 PM      948 (0x03B4)
Executing stand-alone media in full operating system on a machine that is running a Configuration Manager client.       TSMBootstrap      10/14/2015 1:12:30 PM      948 (0x03B4)
User has sufficient security rights to create a service.      TSMBootstrap      10/14/2015 1:12:30 PM      948 (0x03B4)
Running Wizard in Unattended mode      TSMBootstrap      10/14/2015 1:12:30 PM      948 (0x03B4)
Loading Media Variables from "D:\sms\data\variables.dat"      TSMBootstrap      10/14/2015 1:12:31 PM      948 (0x03B4)
no password for vars file      TSMBootstrap      10/14/2015 1:12:31 PM      948 (0x03B4)
Environment scope successfully created: Global\{51A016B6-F0DE-4752-B97C-54E6F386A912}      TSMBootstrap      10/14/2015 1:12:31 PM      948 (0x03B4)
Environment scope successfully created: Global\{BA3A3900-CA6D-4ac1-8C28-5073AFC22B03}      TSMBootstrap      10/14/2015 1:12:31 PM      948 (0x03B4)
UEFI: false      TSMBootstrap      10/14/2015 1:12:31 PM      948 (0x03B4)
Loading variables from the Task Sequencing Removable Media.      TSMBootstrap      10/14/2015 1:12:31 PM      948 (0x03B4)
Loading Media Variables from "D:\sms\data\variables.dat"      TSMBootstrap      10/14/2015 1:12:31 PM      948 (0x03B4)
Root CA Public Certs=      TSMBootstrap      10/14/2015 1:12:31 PM      948 (0x03B4)
Support Unknown Machines: 1      TSMBootstrap      10/14/2015 1:12:31 PM      948 (0x03B4)
Custom hook from D:\\TSConfig.INI is       TSMBootstrap      10/14/2015 1:12:31 PM      948 (0x03B4)
No hook is found to be executed before downloading policy      TSMBootstrap      10/14/2015 1:12:31 PM      948 (0x03B4)
Loading policy from D:\sms\data\Policy.XML.      TSMBootstrap      10/14/2015 1:12:32 PM      948 (0x03B4)
Loading policy from file: D:\sms\data\Policy.XML      TSMBootstrap      10/14/2015 1:12:32 PM      948 (0x03B4)
This Task sequence is set for RunFromDP      TSMBootstrap      10/14/2015 1:12:33 PM      948 (0x03B4)
Retrieving collection variable policy.      TSMBootstrap      10/14/2015 1:12:33 PM      948 (0x03B4)
Found 0 collection variables.      TSMBootstrap      10/14/2015 1:12:33 PM      948 (0x03B4)
Retrieving machine variable policy.      TSMBootstrap      10/14/2015 1:12:33 PM      948 (0x03B4)
Found 0 machine variables.      TSMBootstrap      10/14/2015 1:12:33 PM      948 (0x03B4)
Setting collection variables in the task sequencing environment.      TSMBootstrap      10/14/2015 1:12:34 PM      948 (0x03B4)
Setting machine variables in the task sequencing environment.      TSMBootstrap      10/14/2015 1:12:34 PM      948 (0x03B4)
Creating the Task Sequencing Environment.      TSMBootstrap      10/14/2015 1:12:34 PM      948 (0x03B4)
Setting Media Variables in Task Sequencing Environment.      TSMBootstrap      10/14/2015 1:12:34 PM      948 (0x03B4)
Resolving content location for selected task sequence.      TSMBootstrap      10/14/2015 1:12:34 PM      948 (0x03B4)
Task sequence content location:       TSMBootstrap      10/14/2015 1:12:34 PM      948 (0x03B4)
Getting policy for CCM_SoftwareDistribution[AdvertID="{233B267F-7892-43AE-8676-710E4398F0EC}", PackageID="BSD00005", ProgramID="*"]      TSMBootstrap      10/14/2015 1:12:34 PM      948 (0x03B4)
Successfully resolved policy for BSD00005.      TSMBootstrap      10/14/2015 1:12:34 PM      948 (0x03B4)
Resolving content location for BSD00005      TSMBootstrap      10/14/2015 1:12:34 PM      948 (0x03B4)
BSD00005 content location: file:VOL001:\SMS\PKG\BSD00005      TSMBootstrap      10/14/2015 1:12:34 PM      948 (0x03B4)
No need to register providers      TSMBootstrap      10/14/2015 1:12:34 PM      948 (0x03B4)
Registering the Progress UI.      TSMBootstrap      10/14/2015 1:12:34 PM      948 (0x03B4)
Executing command line: "D:\SMS\BIN\x64\TsProgressUI.exe" /Register      TSMBootstrap      10/14/2015 1:12:34 PM      948 (0x03B4)
==========[ TsProgressUI started in process 2600 ]==========      TsProgressUI      10/14/2015 1:12:35 PM      3460 (0x0D84)
Registering COM classes      TsProgressUI      10/14/2015 1:12:35 PM      3460 (0x0D84)
sbModulePath = D:\SMS\BIN\x64\TsProgressUI.exe      TsProgressUI      10/14/2015 1:12:35 PM      3460 (0x0D84)
Shutdown complete.      TsProgressUI      10/14/2015 1:12:35 PM      3460 (0x0D84)
Process completed with exit code 0      TSMBootstrap      10/14/2015 1:12:35 PM      948 (0x03B4)
Successfully registered TS Progress UI.      TSMBootstrap      10/14/2015 1:12:35 PM      948 (0x03B4)
Setting Media Variables in Task Sequencing Environment.      TSMBootstrap      10/14/2015 1:12:35 PM      948 (0x03B4)
Setting WinPE Flag in the Task Sequencing Environment.      TSMBootstrap      10/14/2015 1:12:35 PM      948 (0x03B4)
Setting Media Type Flag in the Task Sequencing Environment.      TSMBootstrap      10/14/2015 1:12:35 PM      948 (0x03B4)
Setting Local Computer Name in the Task Sequencing Environment.      TSMBootstrap      10/14/2015 1:12:35 PM      948 (0x03B4)
Setting Selected Task Sequence Information Task Sequencing Environment.      TSMBootstrap      10/14/2015 1:12:35 PM      948 (0x03B4)
Setting selected task sequence information in the environment.      TSMBootstrap      10/14/2015 1:12:35 PM      948 (0x03B4)
Setting source for BSD00005 to file:VOL001:\SMS\PKG\BSD00005      TSMBootstrap      10/14/2015 1:12:35 PM      948 (0x03B4)
Setting _SMSTSPKGFLAGSBSD00005 to 0      TSMBootstrap      10/14/2015 1:12:35 PM      948 (0x03B4)
Initializing the local data path.      TSMBootstrap      10/14/2015 1:12:35 PM      948 (0x03B4)
Windows To Go requires a minimum operating system of Windows 8      TSMBootstrap      10/14/2015 1:12:36 PM      948 (0x03B4)
Volume C:\ has attributes 0x00000000      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
C:\_SMSTaskSequence does not exist      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Updated security on object C:\_SMSTaskSequence.      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Setting Task Sequence User State Path to "%_SMSTSMDataPath%\UserState".      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Setting Network Access Account Information in Task Sequencing Environment.      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Cannot find NAAConfig CCM_NetworkAccessAccount      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Network Access Account is not set      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Unable to get Network Access Account. Ignoring.      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Found property CCM_ClientAgentConfig.BrandingTitle = Batesville School District      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Setting Client ID in Task Sequencing Environment.      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Setting machine name from SMS database.      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Failed to retrieve the machine name from SMS database. Fall back to the current local computer name.      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Setting SysHealthConfig policy in the environment.      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Setting SoftUpdConfig policy in the environment.      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Setting SoftDistClient config policy in the environment.      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Setting software update policy in the environment.      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Setting software update policy in the environment.      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Setting quarantine policy in the environment.      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Setting NAAConfig policy in the environment.      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Setting CIVersionInfo policy in the environment.      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Setting RebootSettingsConfig policy in the environment.      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Setting AppManClientConfig policy in the environment.      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Media root drive is: D:\      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Setting launch mode to: CD      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
copying files from d:\ to C:\_SMSTaskSequence      TSMBootstrap      10/14/2015 1:12:38 PM      948 (0x03B4)
Executing command line: OsdCaptureCD.exe      TSMBootstrap      10/14/2015 1:12:57 PM      948 (0x03B4)
==============================[ OSDCaptureCD.exe ]==============================      OSDCaptureCD      10/14/2015 1:12:57 PM      2860 (0x0B2C)
Command line: "OsdCaptureCD.exe"      OSDCaptureCD      10/14/2015 1:12:57 PM      2860 (0x0B2C)
Loading vista instructions.      OSDCaptureCD      10/14/2015 1:12:57 PM      2860 (0x0B2C)
Activating Welcome Page.      OSDCaptureCD      10/14/2015 1:12:57 PM      2860 (0x0B2C)
Verifying that this machine meets the capture requirements.      OSDCaptureCD      10/14/2015 1:13:42 PM      2860 (0x0B2C)
Local machine is not a domain controller.      OSDCaptureCD      10/14/2015 1:13:42 PM      2860 (0x0B2C)
System partition is NTFS      OSDCaptureCD      10/14/2015 1:13:42 PM      2860 (0x0B2C)
Verified deploy tools are present.      OSDCaptureCD      10/14/2015 1:13:42 PM      2860 (0x0B2C)
Local machine is not part of a domain      OSDCaptureCD      10/14/2015 1:13:42 PM      2860 (0x0B2C)
Activating Destination Page.      OSDCaptureCD      10/14/2015 1:13:42 PM      2860 (0x0B2C)
Verifying credentials can be used to write image file.      OSDCaptureCD      10/14/2015 1:17:20 PM      2860 (0x0B2C)
Deleting any existing network connections to "\\sccm-a-1\e$\SoftwareDistribution\Images\Captured Images\*".      OSDCaptureCD      10/14/2015 1:17:20 PM      2860 (0x0B2C)
Verifying connection to: \\sccm-a-1\e$\SoftwareDistribution\Images\Captured Images      OSDCaptureCD      10/14/2015 1:17:20 PM      2860 (0x0B2C)
Connection to "\\sccm-a-1\e$\SoftwareDistribution\Images\Captured Images" failed with credential conflict. Using existing connection.      OSDCaptureCD      10/14/2015 1:17:23 PM      2860 (0x0B2C)
Activating Welcome Page.      OSDCaptureCD      10/14/2015 1:17:23 PM      2860 (0x0B2C)
Activating Finish Page.      OSDCaptureCD      10/14/2015 1:19:26 PM      2860 (0x0B2C)
Saving capture information in the environment.      OSDCaptureCD      10/14/2015 1:19:30 PM      2860 (0x0B2C)
Exiting with return code 0x00000000      OSDCaptureCD      10/14/2015 1:19:30 PM      2860 (0x0B2C)
Process completed with exit code 0      TSMBootstrap      10/14/2015 1:19:30 PM      948 (0x03B4)
Creating the TS Manager Service.      TSMBootstrap      10/14/2015 1:19:30 PM      948 (0x03B4)
Starting Task Sequence Manager Service.      TSMBootstrap      10/14/2015 1:19:30 PM      948 (0x03B4)
Modifying TS Manager Service to auto start.      TSMBootstrap      10/14/2015 1:19:30 PM      948 (0x03B4)
Starting the TS Manager Service.      TSMBootstrap      10/14/2015 1:19:30 PM      948 (0x03B4)
Successfully intialized Logging for TS Manager.      TSManager      10/14/2015 1:19:30 PM      3572 (0x0DF4)
Commandline: "C:\_SMSTaskSequence\sms\bin\x64\TsManager.exe" /service /noclient /loghandle 2400 244      TSManager      10/14/2015 1:19:30 PM      3572 (0x0DF4)
Successfully registered Task Sequencing COM Interface.      TSManager      10/14/2015 1:19:30 PM      3572 (0x0DF4)
Executing as a service      TSManager      10/14/2015 1:19:30 PM      3572 (0x0DF4)
Started ServiceMain      TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
Waiting for the TS Manager Service to start.      TSMBootstrap      10/14/2015 1:19:30 PM      948 (0x03B4)
Task Sequence Manager executing as service main thread      TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
Deleting volume ID file C:\_SMSTSVolumeID.7159644d-f741-45d5-ab29-0ad8aa4771ca ...      TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
Task Sequencing Manager Service successfully started.      TSMBootstrap      10/14/2015 1:19:30 PM      948 (0x03B4)
Parsing task sequence . . .      TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
Exiting with return code 0x00000000      TSMBootstrap      10/14/2015 1:19:30 PM      948 (0x03B4)
Task sequence schema version is 3.00      TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
Current supported schema version is 3.10 and 3.00      TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
No variables found in default variable list      TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
Starting Task Sequence Engine . . .       TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
****************************************************************************      TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
Set a global environment variable _SMSTSNextInstructionPointer=0      TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
Set a global environment variable _SMSTSInstructionTableSize=6      TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
Set a global environment variable SMSTSRebootRequested=      TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
Set a global environment variable SMSTSRebootDelay=      TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
Set a global environment variable SMSTSRebootMessage=      TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
Set a global environment variable SMSTSRebootReason=      TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
Set a global environment variable SMSTSRetryRequested=      TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
The task execution engine started execution      TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
Do not send status message in full media case      TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
Do not send status message in full media case      TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
Start executing an instruction. Instruction name: Capture the Reference Machine. Instruction pointer: 0      TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
Set a global environment variable _SMSTSCurrentActionName=Capture the Reference Machine      TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
Set a global environment variable _SMSTSNextInstructionPointer=0      TSManager      10/14/2015 1:19:30 PM      3432 (0x0D68)
The group (Capture the Reference Machine) has been successfully started      TSManager      10/14/2015 1:19:31 PM      3432 (0x0D68)
Do not send status message in full media case      TSManager      10/14/2015 1:19:31 PM      3432 (0x0D68)
Updated security on object C:\_SMSTaskSequence.      TSManager      10/14/2015 1:19:31 PM      3432 (0x0D68)
Set a global environment variable _SMSTSNextInstructionPointer=1      TSManager      10/14/2015 1:19:31 PM      3432 (0x0D68)
Set a TS execution environment variable _SMSTSNextInstructionPointer=1      TSManager      10/14/2015 1:19:31 PM      3432 (0x0D68)
Set a global environment variable _SMSTSInstructionStackString=0      TSManager      10/14/2015 1:19:31 PM      3432 (0x0D68)
Set a TS execution environment variable _SMSTSInstructionStackString=0      TSManager      10/14/2015 1:19:31 PM      3432 (0x0D68)
Save the current environment block      TSManager      10/14/2015 1:19:31 PM      3432 (0x0D68)
Start executing an instruction. Instruction name: Prepare Configuration Manager Client. Instruction pointer: 1      TSManager      10/14/2015 1:19:31 PM      3432 (0x0D68)
Set a global environment variable _SMSTSCurrentActionName=Prepare Configuration Manager Client      TSManager      10/14/2015 1:19:31 PM      3432 (0x0D68)
Set a global environment variable _SMSTSNextInstructionPointer=1      TSManager      10/14/2015 1:19:31 PM      3432 (0x0D68)
Set a global environment variable _SMSTSLogPath=C:\Windows\CCM\Logs\SMSTSLog      TSManager      10/14/2015 1:19:31 PM      3432 (0x0D68)
Expand a string: osdpreparesmsclient.exe      TSManager      10/14/2015 1:19:31 PM      3432 (0x0D68)
Expand a string:       TSManager      10/14/2015 1:19:31 PM      3432 (0x0D68)
Start executing the command line: osdpreparesmsclient.exe      TSManager      10/14/2015 1:19:31 PM      3432 (0x0D68)
!--------------------------------------------------------------------------------------------!      TSManager      10/14/2015 1:19:31 PM      3432 (0x0D68)
Expand a string: FullOS      TSManager      10/14/2015 1:19:31 PM      3432 (0x0D68)
Executing command line: osdpreparesmsclient.exe      TSManager      10/14/2015 1:19:31 PM      3432 (0x0D68)
Checks succeeded. Client meets capture requirements      PrepareSMSClient      10/14/2015 1:19:31 PM      2532 (0x09E4)
Set TSEnv:SMSClientVersion=5.00.7958.1000 ok      PrepareSMSClient      10/14/2015 1:19:31 PM      2532 (0x09E4)
Successfully enabled provisioning mode.      PrepareSMSClient      10/14/2015 1:20:04 PM      2532 (0x09E4)
Waiting for CcmExec service to be fully operational      PrepareSMSClient      10/14/2015 1:20:04 PM      2532 (0x09E4)
CcmExec service is up and fully operational      PrepareSMSClient      10/14/2015 1:20:18 PM      2532 (0x09E4)
Cache contents deleted successfully      PrepareSMSClient      10/14/2015 1:20:18 PM      2532 (0x09E4)
Stopped the service 'ccmexec' successfully      PrepareSMSClient      10/14/2015 1:20:31 PM      2532 (0x09E4)
Successfully stopped the client agent service.      PrepareSMSClient      10/14/2015 1:20:31 PM      2532 (0x09E4)
UnAssigning the SMSClient succeeded      PrepareSMSClient      10/14/2015 1:20:31 PM      2532 (0x09E4)
Removing SitePolicy succeeded.      PrepareSMSClient      10/14/2015 1:20:31 PM      2532 (0x09E4)
Deleted 2 SMS certificates      PrepareSMSClient      10/14/2015 1:20:31 PM      2532 (0x09E4)
Deleting Client properties from file C:\Windows\SMSCFG.INI succeeded.      PrepareSMSClient      10/14/2015 1:20:31 PM      2532 (0x09E4)
Res
smsts.log