This strikes me right away:

> 
> cp --sparse=always /home/raymond/LV2/NLS-Storage/NLS-Storage-flat.vmdk
> +/home/raymond/sdf/NLS-Storage/NLS-Storage-flat.vmdk
> cp: error reading `/home/raymond/LV2/NLS-Storage/NLS-Storage-flat.vmdk':
> +Input/output error
> cp: failed to extend `/home/raymond/sdf/NLS-Storage/NLS-Storage-flat.vmdk':
> +Input/output error


"Error reading" should mean something. You can rule out any issue with the
destination at this point.

I'd check the /var/log/ files and dmesg for failures or errors related to the
source. This was mentioned before.