Domains live on the array (no cache), the vDisk is 100GB and I have more than 1TB free space so that can't be it. Also tried with a 15GB vDisk.
I see the ISO loading, get to the screen with the blue background and white letters, press to install, accept the users agreement, format the disk, copy the setup files and then it reboots. After the reboot I get the Windows XP logo with loading bar, after that it jumps to the installscreen with the 39 minute mark and instantly produces the error. Within 3 seconds.
As far as I know the ISO is SP3, but I can try with a different/new ISO to be sure.