Cloning system drive to a smaller drive

I am trying to upgrade a Dell PowerEdge T110 II server. It currently has 2x1TB drives. They are not configured for RAID. One is the system drive, the other is a data storage network drive.

My end goal is to put 2x4TB with RAID1 setup for the data drive, but first I would like to replace the 1TB system drive with a new 500GB drive I have.

I have been able to use Macrium Reflect to clone from the 1TB system drive to one of the 4TB drives and boot from the 4TB drive. However, when I clone to the 500GB drive, it doesn't boot, with error

Windows failed to start. A Recent hardware or software change might be the > cause. To fix the problem:

1. Insert your windows installation disc and restart your computer.
2. Choose your langugae settings, and then click next
3. Click "repair your computer."

Status: 0xc000000e Info: The boot selection failed because a required device is inaccessible.

I think it may have something to do with bcd, or the BDEDrive partition's placement on the smaller drive?

bcdedit shows the new drive (500GB) holding the bootmgr and the drive I cloned from holding the boot loader.

Also, this machine is in use at a small 7 person office, I can't currently take it down or risk hurting the existing disk. I have a backup, but since I can only boot from my 4TB clone, not my 500gb clone, I have been unable to finish the configuration.

I would greatly appreciate some information on how to proceed. I also do not have any sort of rescue disk. I was not around when it was originally installed.

Thanks! Greg