A 320 GB disk does not have 394 billion sectors. It doesn't even hold 394 billion bytes (which is about 366.9 GiB, or 394 GB in hard disk manufacturer speak).
A 320 GB disk will have (320 [GB] * 1 073 741 824 [b/GB] / 512 [b/sector]) = approximately 671 million sectors, assuming 512 byte sectors. If it uses 4 KiB sectors, the corresponding number is about 83.9 million sectors, but that's unlikely for a drive of that size; 512 byte sectors would be more reasonable to expect for such a drive.
This means that something isn't working as expected. It's hard to tell from your question exactly what is wrong, but it's a pretty safe bet that something is wrong. I just hope you didn't somehow confuse the source and target drive and it's really complaining because it ran out of space to write the data to...