RnR unsuccessful due to br_funcs stopping

[Triviaguru]

I just bought a T400 (2764CTO with Vista Biz 32) and cannot complete an initial backup with RnR to the internal 250GB HDD. I get a Windows error message stating "br_funcs stopped working and was closed."

I've fully installed, uninstalled and reinstalled RnR 4.21.0015 along with the two recommended Vista patches since that version was released last summer. Inspired on a solution from another thread, changing the Microsoft Software Shadow Copy Provider's Startup Type from Manual to Automatic didn't help.

rr log:
Sun Apr 12 15:58:05 2009 RescueRecovery: Running: hh.exe transRNR.chm
Sun Apr 12 16:35:20 2009 RescueRecovery: Unable to send ENCRYPT_OFF IOCTL: Error 1 SetFilter
Sun Apr 12 16:40:28 2009 RescueRecovery: Loc=1 NoPrimary=0
Sun Apr 12 16:40:28 2009 RescueRecovery: Running: C:\Program Files\Common Files\Lenovo\msgbox.exe /t=56 /id=65 /icon=wait
Sun Apr 12 16:40:29 2009 RescueRecovery: BackupThread Started. There are 3 partitions to back up
Sun Apr 12 16:40:29 2009 RescueRecovery: Running: C:\Program Files\Lenovo\Rescue and Recovery\instapps.exe /capture
Sun Apr 12 16:40:29 2009 RescueRecovery: Running: C:\Program Files\Common Files\Lenovo\msgbox.exe /exit
Sun Apr 12 16:40:29 2009 RescueRecovery: Running: C:\Program Files\Lenovo\Rescue and Recovery\br_funcs.exe backup local level=0 destination="C:\RRbackups" drive=C: location=1 nice=0 pw=0 uuid=0 compress encrypt
Sun Apr 12 17:15:59 2009 RescueRecovery: br_funcs returned error code 0xC00000FD
Sun Apr 12 17:15:59 2009 RescueRecovery: Backup failed. Free Space High=0x00000029 Low=0x0DCCA000

engine log:
Sun Apr 12 16:35:20 2009 ENGINE: Unable to send IOCTL_FFDRIVER_ENCRYPT_OFF
Sun Apr 12 16:40:29 2009 Engine: br_funcs.exe - version is '04.15.0c.00'
Sun Apr 12 16:40:29 2009 Verbatim: WriteDriveContents(DriveLetter='C:', Dest='C:\RRbackups', Level=0, SleepCount=0, DeviceType=1, dwOptFlags=0x00000001)
Sun Apr 12 16:40:29 2009 SHADOW: Shadow called
Sun Apr 12 16:40:41 2009 SHADOW: Attempting to expose copy as 'C:\B'
Sun Apr 12 16:40:42 2009 SHADOW: Shadow exposed as 'C:\B\'
Sun Apr 12 16:40:42 2009 SHADOW: Shadow exits with dwRet = 0x00000000
Sun Apr 12 16:42:37 2009 Verbatim: 0x0000000523cd19e2 - Space required before compression
Sun Apr 12 16:42:37 2009 Verbatim: 0x00000003ddeabb86 - Estimated space required after compression
Sun Apr 12 16:42:37 2009 Verbatim: 0x0000002b39e76000 - Disk space currently available

Please advise. Thanks very much!