The requested operation could not be completed due to a file system limitation

Veeam is not able to write any data to the affected file because of a NTFS limitation. 

Manual un-deduplication (Expand-DedupFile) of the this file also fails with the same error.

1. Disable Windows deduplication
2. Un-dedupe backup files:
   1. copy backup files to a temporary folder
   2. delete original backup files
   3. move copied files back to the original location.
3. Disable NTFS compression on backup repository volume.

For Windows Server 2008(R2) please refer to Microsoft KB for a detailed description of the issue:http://support.microsoft.com/kb/967351

This issue is resolved in Windows Server 2012(R2), however formatting with the large FRS using the command “Format <Drive:> /FS:NTFS /L is still needed.

Important: the command Format <Drive:> /FS:NTFS /L erases all data from the drive.

Additional information regarding suggested configuration of Server 2012 dedupe for backup storage can be found in this article: http://technet.microsoft.com/en-us/library/dn891438.aspx

Depending on the total size of the volume to be formatted you may have to set the cluster size during the format process. Please reference this article to determine which cluster size is needed. http://support.microsoft.com/kb/140365/

Forr more information related to this issue please see this forum post: http://forums.veeam.com/veeam-backup-replication-f2/error-related-to-file-system-limitation-t21448.html

Please note: reformating the volume with /L flag usually helps, but you can still get the same error message later, you can still hit limitation and 4096 Bytes Per FileRecord Segment will not be enough