This service looks similar to a service called Hibernation. In Windows 9x I think this service is handled by the manufacturer of the computer. The service itself is used to save the contents of memory to the hard drive and then drop the computer to a power management mode called Hibernation. This is essentially a power off mode. Upon power up, the computer will read the contents of the file that the service created to boot your computer back to the same place you were. This is kind of like standby/suspend, except all power is removed and the data is saved to the hard drive.
I really can't help you as to why the errors would occur, other than the possibility of running out of disk space. The service will create a file on the hard drive the size of your installed RAM plus about 10%.
If your computer is a desktop, I can't think of any reason to use Hibernation and would just get rid of it. If a laptop, Hibernation could save your bacon if you run out of battery power and don't have time to save your work.
I could be wrong about the service you indicate, just guessing because of the similarity in the name.
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