Time Machine says not enough space, even though 2.3TB available

Hello.

I have My Book Live 3 TB.  The firmware is 01.05.07.

I am using the drive for backup of my macbook and a mac mini.  I am running OS X 10.6.8 (10K549) (Snow Leopard) on my macbook, which is the machine reporting the error.

Time Machine found the My Book and seemed to run properly, but I do not have a backup on the Time Machine and now the Time Machine is reporting insufficient space on the My Book to complete the backup, even though 2.3 TB is still available.

Any help is appreciated.

Lewis.

Have you tried erasing the current TM backup on the MBL settings or a factory reset?