The image is on the GSS server, not on the client. I think I found the issue but I'm confused on why it is a problem. If I try to clone the entire disk with all 4 of it's partitions it would fail with the above error. If I try to clone just the system partition it would fail with not enough space. So, I replaced the 40GB drive with an 80, did an entire disk clone, and it still didn't work. (the source machine had an 80) So, then on the 80gb drive I tried cloning just the system partition, and that did work.
Then I removed all the extra partitions (which were empty) and cloned it again to a 40GB drive and it worked.