Troubleshoot:Attempting to create a restore point within windows 7 environment. Error

Attempting to create a restore point within windows 7 environment.

Hi there am having big problems trying to create a restore point in windows 7 environment.

Volume Shadowing Service is turned on and automatic.

every time I get following error.
The restore point could not be created for the following reason
The shadow copy provider had an error
0x80042306

I have made the volume size bigger 
C:\Windows\system32> icacls c:\  /grant system:f
processed file: c:\
Successfully processed 1 files; Failed processing 0 files

C:\Windows\system32>VSSAdmin resize shadowstorage /For=C: /On=C: /Maxsize=20%
vssadmin 1.1 - Volume Shadow Copy Service administrative command-line tool
(C) Copyright 2001-2005 Microsoft Corp.

Successfully resized the shadow copy storage association

Granted acces to the operating system

C:\Windows\system32> icacls c:\  /grant system:f
processed file: c:\
Successfully processed 1 files; Failed processing 0 files

C:\Windows\system32>Vssadmin list shadowstorage
vssadmin 1.1 - Volume Shadow Copy Service administrative command-line tool
(C) Copyright 2001-2005 Microsoft Corp.

Shadow Copy Storage association
   For volume: (C:)\\?\Volume2420cb4d-c8bc-11df-8287-806e6f6e6963\
   Shadow Copy Storage volume: (C:)\\?\Volume2420cb4d-c8bc-11df-8287-806e6f6e69
63\
   Used Shadow Copy Storage space: 0 B (0%)
   Allocated Shadow Copy Storage space: 0 B (0%)
   Maximum Shadow Copy Storage space: 93.152 GB (20%)


Attempted to run in safe mode but was unable to see the system protection tab in the system properties.

in the event logs i get 

The shadow copies of volume C: were aborted because of an IO failure on volume C:.

The driver detected a controller error on \Device\Ide\IdePort0.

i also tried 
chkdsk /f
sfc /scannow
no errors found

have also turned off any unnecessary services including anti-virus using msconfig

I do notice that the service goes to sleep after a while

The Volume Shadow Copy service entered the stopped state.

Have a Dell Inspiron with oodles of ram and a 500gb disk with 395 gb free and just want to create a restore point for future security 

any ideas what I can try next :)

Solutions to the Problem Attempting to create a restore point within windows 7 environment.

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