The Default quota limit and warning level machine setting should be configured correctly. Specifies the default disk quota limit and warning level for new users of the volume. This setting determines how much disk space can be used by each user on each of the NTFS file system volumes on a computer. It also specifies the warning level, the point at which the user's status in the Quota Entries window changes to indicate that the user is approaching the disk quota limit. This setting overrides new users settings for the disk quota limit and warning level on their volumes, and it disables the corresponding options in the "Select the default quota limit for new users of this volume" section on the Quota tab. This setting applies to all new users as soon as they write to the volume. It does not affect disk quota limits for current users or affect customized limits and warning levels set for particular users (on the Quota tab in Volume Properties). If you disable this setting or do not configure it, the disk space available to users is not limited. The disk quota management feature uses the physical space on each volume as its quota limit and warning level. Fix: (1) GPO: Computer Configuration\Administrative Templates\System\Disk Quotas\Default quota limit and warning level (2) KEY: HKLM\Software\Policies\Microsoft\Windows NT\DiskQuota\Limit