I have come accross this error when VDR is unable to quiesce the Guest O.S or if there are existing snapshots. Here's what I would do:
1. Go to Snapshot Manager, create a new snapshot and then Click on "Delete All" this will write the data on any existing snapshots to the base virtual disk.
2. Do a custom installation of VMware tools and exclude the VSS drivers. Use the VSS drivers provided by windows to quiesce the snapshot.
All the best :smileyhappy:
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f10
VCP3,VCP4,HP UX CSA