Error for hex 0x80029c4a TYPE_E_CANTLOADLIBRARY which isn't something we normally see with a VSS snapshot. Usually VSS errors relate to the quiesce of the server, such as a timeout waiting for an Exchange database.
VMware uses a VSS provider to quiesce the guest OS, and it can't do attached storage. So if by installing SFW you get access to SAN storage VMware VSS provider shouldn't be trying to quiese it. VMware VSS provider should be doing any applications (eg Exchange) assuming local storage for the databases.
If you used SFW with flashsnap, it will install the Veritas VSS provider, but even then you wouldn't be using that for the snapshot, that would be the VMware VSS provider.
The message is showing "VSSEvent" cannot be started so maybe we would get a different message if it could be started - ie, one relating to a quiesce, provider or maybe a writer. You may get errors in the application event log at time of the snapshot, and also there might be clues in the output of the vssadmin list writers and vssadmin list providers commands when SFW is installed.
You can try the same snapshot by using SFW evaluation version that would install Flashsnap option, this might tell us more about the problem.
