0x800705ad Insufficient Quota to complete the requested service

I just started getting this error today.

I have a W7 laptop. I often store a file(s) in a directory, then copy and paste them to a shared folder on my Desktop XP machine.

All of a sudden, one of these files keeps coming up with the error listed above in the subject title.
It also wipes out the file on my XP machine.

Specifically, let's call the file blah.wks. I update the file every day and save the revised version on my laptop and then copy/paste it to the XP machine. Now I do this with a few data files but the error seems to only occur with the one file.

So, any ideas? Is the problem on my W7 machine or XP machine? I googled it and one article (Wikipedia) said to do a System Restore or d/l some program that fixes the error. I'm not sure I want to do the latter. I could do the former, but to which machine? I would also hope there would be an easier fix.

Suggestions?

Mel

Check to see if you have Quota limits set under the Disk Properties.

Forgot to mention - This property is also available in XP. The image shows my C drive but it can be set for any drive in the system.