I see too many errors:
2013-08-09T05:41:31.925-04:00 [05448 error 'task-4'] BlockLevelVolumeCloneMgr::ReadAndSkipBadBlocks(): Error (type 2, code: 23), detected bad sector at offset 0x00000005df69fc00 on the source volume C:
and error 23 is "Data error (cyclic redundancy check)."
You need to do "chkdsk c: /R" and then do a conversion.
HTH