That type of software copies the DVD to hard drive then to the CD, You can set it to burn straight to CD, this may resolve the issue. 12gig hard drive? I think he needs a bigger hard drive tbh...
Anywho's, check where the program stores it temp files, and check that the movie before is there. Also check the space left, in gigs, and just try delete some stuff. But yeah, your not going to get for with a 12gig hard drive.
Kev
