Virtual Disk Service (VDS) crashes on a computer that is running Windows Server 2008 or Windows Vista when a snapshot is deleted
On a computer that is running Windows Vista or Windows Server 2008, Virtual Disk Service (VDS) crashes when you delete some snapshots that you imported.
Note: The snapshots may be created by the Volume Shadow Copy Service (VSS) command-line utilities. For example, the snapshots are created by using Diskshadow.exe or by using Vshadow.exe.
Additionally, the following error is logged in the System log:
Log Name: System
Source: Virtual Disk Service
Event ID: 1
Task Category: None
Description: Unexpected failure. Error code: exception code
For more information on this issue, including potential causes, workarounds, and resolutions, see: Microsoft KB Article KB978897.