For what it's worth, this is my VATLST member for the sandbox. It keeps user 
stuff of the system volume when SMS has problems. SMS rarely has problems :)

VATDEF IPLUSE(PRIVATE),SYSUSE(PRIVATE)
Z13RD*,1,2,3390    ,Y                 
ZRVWK1,1,0,3390    ,Y                 

> -----Original Message-----
> From: IBM Mainframe Discussion List [mailto:[email protected]]
> On Behalf Of venkat kulkarni
> Sent: Monday, May 05, 2014 8:37 AM
> To: [email protected]
> Subject: Re: VATLST ISSUE
> 
> No, I dont think adding at least 1 volumes marked as storage will make
> difference, because in our other system as well, we have defined only
> PRIVATE all working fine. But still suggest, if I really need to make any
> changes to solve this issue.
> 
> 
> On Mon, May 5, 2014 at 9:01 PM, Ed Gould <[email protected]>
> wrote:
> 
> > You need at least 1 volumes marked as storage.
> >
> > Ed
> >
> >
> > On May 5, 2014, at 2:21 AM, venkat kulkarni wrote:
> >
> >  Hello,
> >>            We have single volume z/OS(z/OS 1.13) system and our
> >> VATLST00 entries are as below.
> >>
> >> VATDEF  IPLUSE(PRIVATE)  SYSUSE(PRIVATE)
> >> RES* ,0,0,3390
> >>
> >>
> >> where RES001 is my RES volume .
> >>
> >> But apart from system dataset, I wanted all other dataset to reside
> >> in other volume call OPER01.So I made changed in this VATLST as below.
> >>
> >>
> >> VATDEF  IPLUSE(PRIVATE)  SYSUSE(PRIVATE)
> >> OPER0* ,0,0,3390
> >>
> >> and IPLd system. But after logging into TSO, when I tried submitting
> >> Job or using SRCH command or moving into panels, I am getting issue
> >> as below.
> >>
> >>
> >>  IEF244I VENKAT9  $SYSVK $SYSVK - UNABLE TO ALLOCATE 1 UNIT(S) 135
> >>          AT LEAST 1 OFFLINE UNIT(S) NEEDED.
> >>  IEF877E VENKAT9  NEEDS 1 UNIT(S) 136  FOR $SYSVK $SYSVK ISP00075
> >>  FOR VOLUME PRIVAT-   1
> >>  OFFLINE
> >>  6000-607F 6101-617F 6201-627F 6301-637F 7001-702F 7101-712F
> >> 7201-722F  7301-732F 7401-7437 7501-7537 7601-7637 7701-7737
> >> 7801-782F 7901-792F  7A01-7A2F 7B01-7B2F 7C01-7C37 7D01-7D37
> >> 7E01-7E37 7F01-7F37 8001-802F
> >>
> >>  IEF878I END OF IEF877E FOR VENKAT9  $SYSVK $SYSVK ISP00075
> >> *17 IEF238D VENKAT9  - REPLY DEVICE NAME OR 'CANCEL'.
> >> *IEF882E VENKAT9  $SYSVK $SYSVK IS WAITING FOR A REPLY TO IEF238D
> >> *IEF882E VENKAT9  $SYSVK $SYSVK IS WAITING FOR A REPLY TO IEF238D
> >> *IEF882E VENKAT9  $SYSVK $SYSVK IS WAITING FOR A REPLY TO IEF238D
> R
> >> 17,CANCEL
> >>
> >>
> >> ISPF system data set allocation error - press Enter to continue.
> >> Log file allocation error - ISPF will operate without a log data set.
> >> DAIR RC = 12 dec, DARC = 0484 hex.
> >> ***
> >>
> >> Please suggest.
> >>
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> >>
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