HotFix for Windows 2003 VSS highlights the registry key to increase the VSS 
workspace size.  I set mine to max.
http://support.microsoft.com/kb/826936


> The hotfix also includes a larger initial size for the shadow copy storage 
> area: 300 MB instead of 100 MB. Additionally, if a 300 MB initial size is not 
> sufficient, and if shadow copies are still lost because of high input/output 
> levels, this hotfix includes a way for you to configure the initial size of 
> the shadow copy storage area when the shadow copy storage area is created. 
> You can configure the initial size of the shadow copy storage area by using 
> the configurable registry key setting that this hotfix provides.
> 
> Follow these steps, and then quit Registry Editor:
> 
>    1. Click Start, click Run, type regedit, and then click OK.
>    2. Locate and then click the following key in the registry:
>       HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\VolSnap
>    3. On the Edit menu, point to New, and then click DWORD value.
>    4. Type MinDiffAreaFileSize, and then press ENTER.
>    5. On the Edit menu, click Modify.
>    6. Type the size that you want for the shadow copy storage area, and then 
> click OK. 
> 
> The MinDiffAreaFileSize registry key specifies the minimum size of the shadow 
> copy storage area; the default setting is 300 MB, and the maximum setting is 
> 3 gigabytes (GB). For an accurate setting, specify a value that is a multiple 
> of 300 MB; otherwise, the next multiple of 300 MB will be chosen. A value of 
> 300 is equal to 300 MB, and a value of 3,000 is equal to 3 GB.


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