It seems that my windows 2003 servers were frequently running low on storage space in the system partition. That was strange because the only thing I had in the system partition (c:\ drive in almost all cases) were system files for installed by Microsoft Windows 2003 server setup. After some careful research and digging around the c:\ drive I found out that the Windows patches and service pack updates were filling up the system drive. The other cause was Symantec Antivirus and Antispam live updates. The two folders in combination were using up over 1.3 G of storage space.
Here are the 2 folders with contents that you can safely delete to free up space. c:\Document and settings\All users\Application data\Symantec\LiveUpdate\Downloads and c:\Windows\Software Distribution\Download. If you are uncertain about deleting then simply cut and paste the files in these folders to a different drive with plenty of free space.