Problem scenario: You are using PowerShell 3.0 on Windows 7 and you try to run the PowerShell command start-bitstransfer to download a large file. Running start-bitstransfer results in an error that says "Not Enough space on disk."
Verify the size of the file. See if the destination directory/drive has sufficient space. If this error happens despite there being ample space available in the destination drive and destination directory compared to the size of the source media, see if the destination is using a FAT32 file system. Go to My Computer. Right click the drive (e.g., H:) that is the destination of the download and go to Properties. On the "General" tab there is a section that says "File System." If it is FAT32, the file will not be downloaded if it is 4 GB or larger because that is too big for FAT32.
To change the file system type from FAT32, you can convert the file system to NTFS with this link.