On a system with a Norton product installed, Image for Windows begins a backup in Windows and fails. The log file reports PHYLock Error 0002h and Operation Completed with Error Code 204.
Norton LiveUpdate runs immediately after Image for Windows beings a backup of the Windows system partition. This problem may exist with multiple versions of the Norton products, but was discovered with Norton Internet Security 2011.
Check the history of the Norton product and determine if an update is being run at the same time or shortly after PHYLock locks the drive.
Since this problem is more likely to occur in a scheduled environment where backups and updates run repeatedly at the same times, schedule Image for Windows to back up so it doesn't coincide with LiveUpdate. For example, if the computer wakes up in the night to run the backup, allow enough time for LiveUpdate to run and complete before Image for Windows begins. Note that an update has a greater chance of being applied if the computer has been off for some time.