Just a thought: Is the VHD in use by the hypervisor or mounted?
It could be failing because part of the VHD is locked and unable to be read from the filesystem. This is why zipping the file works and why video files of the same size also work, but not VHD files.
Looking for a file lock in windows:
- Download process explorer (Direct link to live.sysinternals.com)
- Select the Find Menu, choose Find Handle or DLL...
- Type the file name, select search.
There appears to be an experts exchange post with similar issues. But there are no resolutions in the answers.
