Go to your Inventor options and look at the file tab..
Undo should read ...
Inventor 2012 SP1
Vault Pro 2013
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I make a folder under my C drive called inventor undo and I map to that. This way if the error comes up again I can go to that folder and delete everything and restart inventor. All it is telling you is there is no more space for the undo files to go..
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2012 Factory Design Suite ( will not load 2013)
What happen to my Inventor :-(