Can't convert Server 2008 R2 Machine getting error: The VSS snapshots cannot be stored because there is not enough space on the source volumes or because the source machine does not have any NTFS volumes. Error code: 2147754783 (0x8004231F).

I have a couple of Server 08 R2 machines where the P to V conversion fails.  I did some digging and the problem appears to be related to the 100mb System Reserved Partition that has 0% free space available.  Conversion fails with the below error.

The VSS snapshots cannot be stored because there is not enough space on the source volumes or because the source machine does not have any NTFS volumes. Error code:
2147754783 (0x8004231F).

Has anyone had this issue and came up with a solution or work around?

Thanks in advance