A while ago HP added Time Machine support to their MediaSmart servers. I have mentioned previous problems getting Time Machine to back up to the server. Since I had to restore the server, I had to re-setup the Time Machine drive.
This time I was having a hard time creating a volume large enough to back up all of my data. The disc image creation would fail and state that there wasn't enough space on the server, even though that there was plenty.
In this post I mentioned that I was trying to uninstall Avast! antivirus and see what would happen. It looks like Avast! was preventing me from creating a disc image large enough. I believe that the scan was causing the reads to time out on the Mac, so the process just stopped.