iFolder client gets the following error:

iFolder synchronization cannot complete because you don't have enough space on the server.

Free space on the server = 464 MB (total space available 3000 MB)
Space needed to complete synchronization = 2536 MB.

Please free up space in your iolder and click OK.
Click Cancel to cancel to sync.

iFolder client log looks like this:
13.3.2011 23:40:46 Synchronizing with server...
13.3.2011 23:40:48 Synchronization failed

The volume size is 36 GB and it has free space 20% = 7 GB.
So there is enough space to the iFolder sync.

iFolder host is NetWare 6.5.8 server and iFolder version is 2.1.8

The same iFolder is synced from two (2) PC's, a desktop (XP SP3) and notebook (W7 SP1 32bit). Both have been working for long time.

The problems are seen on notebook using Windows 7. The Windows 7 (32-bit) OS has updated with SP1 on Saturday (May 12th.2011). After the update iFolder worked but on Sunday evening the errors started.

iFolder client (2.1.8) has removed and reinstalled. First the client seemed to work OK, but after the sync of last file, the error reoccured again.

iFolder sync partially works: files and folders created on desktop PC are synced to notebook.
But files created on notebook are not synced to desktop.

Any tips how to repair or troubleshoot?

Kind Regards, Harri