DISM fails with 'There is not enough space on the disk.' while capturing an image

I use DISM to capture images and store them on a network disk. I use a standard 32bit WinPE 4.0 environment to capture them.

My current path was set to i:\images and I executed the following command:

dism  /capture-image /imagefile:ae2212-w81-64bit-v1.wim /capture-dir:c:\ /name:system

It ran up to 100% and which point it failed with the error There is not enough space on the disk.. During capture I monitored the network drive and I could see the image growing. When the error message occurred the image was deleted.

What is odd is that the image would have been about 15GB and the network drive has over 500GB free.

What could be going wrong, should I use the /scratchdir option?

2014-02-19 01:04:37, Info                  DISM   DISM WIM Provider: PID=1216 c:\Windows.old\Windows\WinSxS\x86_wcf-m_svc_mon_sup_dll_31bf3856ad364e35_6.2.9200.16432_none_a2bd221c1cde6e62\ServiceMonikerSupport.dll (HRESULT=0x8007011A) - CWimManager::WimProviderMsgLogCallback
[1216] [0xc144012f] 
2014-02-19 01:04:37, Info                  DISM   DISM WIM Provider: PID=1216 c:\Windows.old\Windows\WinSxS\x86_wcf-system.identitymodel_b03f5f7f11d50a3a_6.2.9200.16432_none_30a420f7f05ab330\System.IdentityModel.dll (HRESULT=0x8007011A) - CWimManager::WimProviderMsgLogCallback
[1216] [0xc144012f] 
2014-02-19 01:04:37, Info                  DISM   DISM WIM Provider: PID=1216 c:\Windows.old\Windows\WinSxS\x86_wcf-system.runtime.serialization_b03f5f7f11d50a3a_6.2.9200.16432_none_123c6840d0913997\System.Runtime.Serialization.dll (HRESULT=0x8007011A) - CWimManager::WimProviderMsgLogCallback
[1216] [0x80070070] ReadWriteDataInternal:(141): There is not enough space on the disk.
[1216] [0x80070070] ReadWriteDataInternal:(141): There is not enough space on the disk.
[1216] [0x80070070] ReadWriteDataInternal:(141): There is not enough space on the disk.
[1216] [0x80070070] ReadWriteDataInternal:(141): There is not enough space on the disk.
[1216] [0x80070070] ReadWriteDataInternal:(141): There is not enough space on the disk.
[1216] [0x80070070] ReadWriteDataInternal:(141): There is not enough space on the disk.
[1216] [0x80070070] ReadWriteDataInternal:(141): There is not enough space on the disk.
[1216] [0x80070070] ReadWriteDataInternal:(141): There is not enough space on the disk.
[1216] [0x80070070] ReadWriteDataInternal:(141): There is not enough space on the disk.
[1216] [0x80070070] ReadWriteDataInternal:(141): There is not enough space on the disk.
[1216] [0x80070070] ReadWriteDataInternal:(141): There is not enough space on the disk.
[1216] [0x80070070] ReadWriteDataInternal:(141): There is not enough space on the disk.
[1216] [0x80070070] ReadWriteDataInternal:(141): There is not enough space on the disk.
[1216] [0x80070070] ReadWriteDataInternal:(141): There is not enough space on the disk.
[1216] [0x80070070] ReadWriteDataInternal:(141): There is not enough space on the disk.
[1216] [0x80070070] ReadWriteDataInternal:(141): There is not enough space on the disk.
2014-02-19 01:56:22, Error                 DISM   DISM WIM Provider: PID=1216 TID=1220 base\ntsetup\opktools\dism\providers\wimprovider\dll\wimmanager.cpp:1217 - CWimManager::Capture(hr:0x80070070)
2014-02-19 01:56:22, Error                 DISM   DISM WIM Provider: PID=1216 TID=1220 base\ntsetup\opktools\dism\providers\wimprovider\dll\wimmanager.cpp:4274 - CWimManager::InternalCmdCaptureBase(hr:0x80070070)
2014-02-19 01:56:22, Error                 DISM   DISM WIM Provider: PID=1216 TID=1220 Error executing command - CWimManager::InternalExecuteCmd(hr:0x80070070)
2014-02-19 01:56:22, Error                 DISM   DISM WIM Provider: PID=1216 TID=1220 base\ntsetup\opktools\dism\providers\wimprovider\dll\wimmanager.cpp:1928 - CWimManager::ExecuteCmdLine(hr:0x80070070)
2014-02-19 01:56:22, Error                 DISM   DISM.EXE: WimManager processed the command line but failed. HRESULT=80070070
2014-02-19 01:56:22, Info                  DISM   DISM.EXE: Image session has been closed. Reboot required=no.
2014-02-19 01:56:22, Info                  DISM   DISM.EXE: 
2014-02-19 01:56:22, Info                  DISM   DISM.EXE: <----- Ending Dism.exe session ----->
2014-02-19 01:56:22, Info                  DISM   DISM.EXE: 
2014-02-19 01:56:22, Info                  DISM   DISM Provider Store: PID=1216 TID=1220 Found the OSServices.  Waiting to finalize it until all other providers are unloaded. - CDISMProviderStore::Final_OnDisconnect
2014-02-19 01:56:22, Info                  DISM   DISM Provider Store: PID=1216 TID=1220 Disconnecting Provider: FolderManager - CDISMProviderStore::Internal_DisconnectProvider
2014-02-19 01:56:22, Info                  DISM   DISM Provider Store: PID=1216 TID=1220 Disconnecting Provider: WimManager - CDISMProviderStore::Internal_DisconnectProvider
2014-02-19 01:56:22, Info                  DISM   DISM Provider Store: PID=1216 TID=1220 Disconnecting Provider: VHDManager - CDISMProviderStore::Internal_DisconnectProvider
2014-02-19 01:56:22, Info                  DISM   DISM Provider Store: PID=1216 TID=1220 Disconnecting Provider: GenericImagingManager - CDISMProviderStore::Internal_DisconnectProvider
2014-02-19 01:56:22, Info                  DISM   DISM Provider Store: PID=1216 TID=1220 Disconnecting Provider: Compatibility Manager - CDISMProviderStore::Internal_DisconnectProvider
2014-02-19 01:56:22, Info                  DISM   DISM Provider Store: PID=1216 TID=1220 Releasing the local reference to DISMLogger.  Stop logging. - CDISMProviderStore::Internal_DisconnectProvider

Depending on the boot device (USB or CD/ROM) the capture process makes a decision of where to write its scratch files. Since a USB is writable, it tries to write massive scratch files to it. Try using the /scratchdir option and direct scratch files to media with plenty of room.