My colleague confirmed this with his change set although I do not know it works or not. And he referred to an article about this exception. The link is here http://daniel-richardson.blogspot.com/2008/12/handling-eventlogentrywritten-event-for.html
"A Win32Exception is thrown if EnableRaisingEvents is set to true on an empty EventLog. The exception message is "The file size exceeds the limit allowed and cannot be saved".
The workaround for this is to check if the EventLog is empty and write an entry if necessary before setting EnableRaisingEvents to true."
The workaround for this is to check if the EventLog is empty and write an entry if necessary before setting EnableRaisingEvents to true."
Or you do not set EnableRaisingEvents to true for no good reason.