Cannot Create Acronis Secure Zone. There is not enough spac. (0x2)

I am using Acronis True Image OEM. Attached picture of the error I'm experiencing during the restore partition creation.

My script.xml has these parameters:

install
serial
oem_zone partition="1-1"
source disk="1"
oemzone_menu key="F10" default="start" timeout="30"
/oem_zone
/install

(I removed the XML formatting as the post was uable to display the XML formatting.)

My System is running Windows 7 32 bit (POSReady7) with 3 partitions.
System partition == 100 MB with 72 MB free
First Primary Partition == 140 GB with 127 GB Free
Second Primary Partition == 10 GB with 9 GB Free

Attached is a report generated using AcronisInfo Utility and also screenshot of the issue when the creation is failing.