Initially my VSS was set to start manual too, but at a similar problem (on Windows 7) I was advised to set it automatic; then it helped.
Not sure what type of problem you were having but I have never needed to do that. Perhaps the same type of situation is involved here.
Sorry, I don't know Event Viewer, how can I see it?
Use Winkey+X to open the menu, then select Event Viewer. It is a place you can view the various logs on the system, and one of the error or warning messages might contain information about the VSS service. If it does, the info might be helpful.
Boot media is not used to make the backup. It is for restoration in case the OS is down.
Many imaging programs will have a way to use them from some type of boot media. If yours does, it might be able to create the backup image without needing the VSS service.
I try to backup selected partitions from my internal hard-disk to an external one, so space cannot be a problem.
I don't know the built in imaging utility, how can I use it?
The "Space" being referred to is free space on a partition needed for making backup shadow copies. If there is not enough space, it will not work. Perhaps a picture of your Disk Management window showing the partitions and the info about free space might help. Use the snipping tool to take the picture and attach using the image icon at the top of the reply window.
The Backup utility in Windows 8, which is going away with 8.1, is in the Control Panel listed as "Windows 7 File Recovery". It will create backup images and restore back exactly as they were made. Some folks don't like it because it has limited options, but you could try it for testing. You can open the Control Panel by right clicking in the lower left corner then selecting it - same menu as Winkey+X.