Cannot create system image

Hi, I had created a system image via Control Panel/Backup And Restore and had it residing on an external drive.
That was about a year ago and I felt the time had come to make a new image to better reflect the state of things.
So the other day I deleted the image and opened up in order to create a new image.
But I got an error message (see attached .jpg).
What to do?

Backup trouble.jpg

Grateful for any and all help!

Check if you have enough disk space for backup.

Try solutions from here:
Not enough space on drives for backup to use vss.
Sure I have enough space. Like I said I was going to replace an existing image that I felt had become obsolete. There is 104GB free space on the drive that held the old image - ample space, I should think, for a system image.
But I will check out your tip, thanks.

OK, when I followed the provided link, it said:

Usually this error come when 100 MB hidden System Reserved partition created by Windows 7 does not have enough space to store a shadow copy. Please check the freespace on this volume. Follow the following steps:
1. Start -> Computer -> Right click -> Manage
2. Select Storage -> Disk management.
3. Verify that you have a System Reserved partition of 100 MB size.
4. If yes, right click on this volume and select Properties.
5. View used and free space.

Windows backup wiil require around 40 MB of free space on this partition to backup successfully.

Well, I have 56MB free what?

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