[dnanian]

Mat,

You didn't give me much information here -- but I never said this was a "hardware" problem. I said you should repair the source drive. (And I know what a malloc error is, really.)

What's going on is that a structure in the file system has a bad/damaged size or invalid structure, typically in its extended attributes (which includes ACLs), and the OS X calls we're using to copy the data are getting confused by that and doing something wrong. The actual failure is pretty deep in the file system copy calls.

Are you running with 10.4.11 server? If so, there are a number of bugs in ACL handling in 10.4.11 that can cause this problem (Apple fixed these issues in Leopard, although in some situations they can still happen, hence the repair request).

But, try turning off the ACL copying checkbox in the Advanced tab of Options.