Fantastic post over The Configuration Manager Support Team Blog.

Read the full post here for the cause and resolutions.

Here’s a snippet:

When a Task Sequence is created via the "Create New Task Sequence Wizard", the Task Sequence may fail if the Windows OS being deployed is Windows 7 and the reference Windows 7 WIM image being deployed was manually created and then captured using the SCCM 2007 Capture CD.

The Task Sequence Error dialog may show one of the following errors:

Error 1

Task Sequence: <Task_Sequence_Name> has failed with the error code (0x8000FFFF). For more information, please contact your system administrator or helpdesk operator.

Error 2

Task Sequence: <Task_Sequence_Name> has failed with the error code (0x80070070). For more information, please contact your system administrator or helpdesk operator.

Examining the SMSTS.log(s) reveals one or more of the following errors:

Error 1

Partition 1 larger than remaining disk space. Requested partition size: <X>, remaining size: <Value_smaller_than_X> OSDDiskPart
LoadPartitionConfiguration( i, oDisk, cbDiskSize, cbContainerPartitionSize, pCurPartition), HRESULT=8000ffff (e:\nts_sms_fre\sms\client\osdeployment\osddiskpart\main.cpp,751) OSDDiskPart
LoadDiskConfiguration(oDisk), HRESULT=8000ffff (e:\nts_sms_fre\sms\client\osdeployment\osddiskpart\main.cpp,1412) OSDDiskPart
Invalid configuration specified.  Please ensure that the task sequence is properly configured. OSDDiskPart
OSDDiskPart.exe failed: 0x8000ffff OSDDiskPart
Process completed with exit code 2147549183 TSManager
!——————————————————————————————–! TSManager
Failed to run the action: Partition Disk.
Catastrophic failure (Error: 8000FFFF; Source: Windows) TSManager
The execution of the group (Install Operating System) has failed and the execution has been aborted. An action failed.
Operation aborted (Error: 80004004; Source: Windows) TSManager
Failed to run the last action: Partition Disk. Execution of task sequence failed.
Catastrophic failure (Error: 8000FFFF; Source: Windows) TSManager

Error 2

Successfully wiped C:\ ApplyOperatingSystem
Applying image to C:\ ApplyOperatingSystem
Applying image 2 to volume C: ApplyOperatingSystem
WIM error:C:\Windows\winsxs\x86_microsoft-windows-mulanttsvoiceenudsk_31bf3856ad364e35_6.1.7600.16385_none_0f51daf70520cd99\M1033DSK.CSD.
There is not enough space on the disk. (Error: 80070070; Source: Windows) ApplyOperatingSystem
WIMApplyImage( hVolumeImage, const_cast<LPWSTR>(pathTargetVolume.c_str()), WIM_FLAG_VERIFY), HRESULT=80070070 (e:\nts_sms_fre\sms\framework\tscore\wimfile.cpp,512) ApplyOperatingSystem
Unable to apply (0x80070070) ApplyOperatingSystem
this->imageFile.ApplyVolumeImage(imageIndex, this->targetVolume), HRESULT=80070070 (e:\nts_sms_fre\sms\client\osdeployment\applyos\installimage.cpp,707) ApplyOperatingSystem
ApplyImage(), HRESULT=80070070 (e:\nts_sms_fre\sms\client\osdeployment\applyos\installimage.cpp,1416) ApplyOperatingSystem
Apply(), HRESULT=80070070 (e:\nts_sms_fre\sms\client\osdeployment\applyos\installimage.cpp,1456) ApplyOperatingSystem
Installation of image 2 in package SP20001C failed to complete..
There is not enough space on the disk. (Error: 80070070; Source: Windows) ApplyOperatingSystem
Failed to run the action: Apply Operating System.
There is not enough space on the disk. (Error: 80070070; Source: Windows) TSManager
The execution of the group (Install Operating System) has failed and the execution has been aborted. An action failed.
Operation aborted (Error: 80004004; Source: Windows) TSManager
Failed to run the last action: Apply Operating System. Execution of task sequence failed.
There is not enough space on the disk. (Error: 80070070; Source: Windows) TSManager