Please follow this guide on trouble shooting an image upload.
[url]http://fogproject.org/forum/threads/wiki-troubleshooting-an-image-upload.21/[/url]
The screenshot looks like it’s failing on the ‘ntfsresize’ command. This is where it will probably error or break.
Generally if the NTFS resize fails, there is some sort of file system issue that has to be fixed with chkdsk.
Any errors, or anything odd should be reported here.