"Quota violation warning" & Time Machine stopped working

I ended up deleting the TM sparsebundle with ssh (although I had to rename it because even with '\' instead of spaces I couldn't delete it). I made sure I had a backup of all my important files first. Once that was done I reset my max size in frontview making sure it was a fair way under the max allowable and started the backup. I must admit TM found the readynas immediately and started backing up immediately as well (and all has been fine since). Prior to this TM could take quite a while to locate the readynas and could take a long time preparing. I'm not sure if it was due to the changes in Snow Leopard and Lion or the fact that the sparsebundle is much smaller at the moment, but it's definitely faster now. All in all probably worth the hassle (hopefully it won't recur in future).