The drive ‘C:’ where users’ temporary directory is located does not have enough disk space to stage content for the media.
It seems as if CreateMedia.exe just uses %temp%_tsmedia_1492Cache as the scratch dir. You could try to change the variable value of %temp% to whatever directory.
Change the TEMP and TMP Registry values in HKCU\Environment to E:TEMP. You’ll probably have to log off an on again. CreateTSMedia.log shows that the E:TEMP is being used for staging by the wizard.