"An error occurred while quiescing the virtul machine. See the virtual machine's event log for details."
This can happen before or after you deploy VSS. You may or may not see anything in the event log.
1. The Feeeze.bat file needs to be cleaned up
2. VM shows it needs consolidation even though there are no open snapshots.
Remove everything from the freeze.bat file except the "c:\program files.......VZshadow.exe" Line
Right click on the VM and choose consolidate.
Now try to run a quiesced memory snapshot in vSphere client. If this works, retry the backup.