Hello again Fdc.
Geez mate I was hoping that was sorted.
I know we started to discuss this and I think we got sidetracked, have you been through the whole (above) process with the max set at 4GBs or less?
Have a look at the tutorial at the link below to set the "max allotted" space to 4GB and see how that goes and let me know, this is how we were doing it in Vista before Windows 7 was released.
System Restore - disk space - Vista Forums