UPDATE:  As of January 3, 2013, it seems like Google Drive has a bug described here:


If you receive a Google Docs storage full error during sync, here are the steps to troubleshoot this error:

STEP 1: Go to  https://www.google.com/settings/storage to verify if you have enough Google Drive storage.


STEP 2: If you do not have enough free storage, please upgrade your storage or go to http://drive.google.com to delete some files.


STEP 3: If you have enough available storage, then you need to verify whether uploading into Google Drive works. Please go to http://drive.google.com and try uploading one file manually via the Google Drive interface. On upload, please deselect “convert to Google Docs format.”


STEP 4: If the step 3 fails, try to delete some files from Google Drive’s Trash. More information on how to manage Google Drive Trash can be found here: http://support.google.com/drive/bin/answer.py?hl=en&answer=2375102.


STEP 5: After you have deleted some files from Google Drive Trash, please try step 3 again. If you receive an error even after deleting files from Google Drive Trash, please contact Google Drive support via their forums:    http://support.google.com/a/bin/answer.py?hl=en&answer=2492320.


If you have Google Apps for Business, Government, and Education editions, you can open a support ticket via your Google Apps Control Panel console.


STEP 6: If step 3 is not failing, but cloudHQ is still reporting an error in sync please email cloudHQ support at support@cloudHQ.net.