I had some trouble copying over a large VM file to my external drive on my Windows Vista system and was given an error that my drive ran out of space when it had over 170GB of free space left on it.  The error I received was:

The file is too large for the destination file system.

I did a quick search for it on the internet and found that Scott Hanselman had a solution for it.

All you had to do was remove the NTFS security from the drive with a simple command.

In my case my external hard drive is drive D: so I ran this command:

convert d: /fsntfs /nosecurity

It took a while and needed confirmation to be dismounted first, but it all works now.

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