I think this error has to do with BI thinking I am running low of space on my C:\ drive?
EDIT: OK, I think I figured it out. While changing the storage directories to my storage pool, I noticed that the size limit set for "New" is 10gb, "Stored" is 20gb, and "Alerts" is 1gb. Add that together and you get 31gb vs the free space of 29.7gb. It all makes sense now. Not really an issue anymore since I moved the "Stored" location to my big drive pool.