"OSearch VSS Writer" is in a failed state VSS_WS_FAILED_AT_PREPARE_SNAPSHOT VSS_E_WRITERERROR_OUTOFRESOURCES

The system state backup using a 3rd party software is failing because of a VSS error.  The same error can be replicated by using diskshadow.exe, so it's not an issue with the backup program.

Here is what happens:

c:\> diskshadow
DISKSHADOW> reset 
DISKSHADOW> set verbose on
DISKSHADOW> set option differential
DISKSHADOW> set context volatile
DISKSHADOW> add volume c:
DISKSHADOW> create 

When trying to create the snapshot, it fails with:
ERROR: Selected writer "OSearch VSS Writer" is in a failed state
     - Status: 8 (VSS_WS_FAILED_AT_PREPARE_SNAPSHOT)
     - Writer failure code: 0x (VSS_E_WRITERERROR_OUTOFRESOURCES)
     - Writer ID: {8d5f38cd-fb7a-49ca-ae1b-21d1f017d8f9}
     - Instance ID: {3fc6ed81-4eba-4295-baf6-b908ad34f46e}

The last operation failed.
- Returned HRESULT: 80042301
- Error text: VSS_E_BAD_STATE

Thanks,
Marc...