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Is there any impact of exceeding the data storage on creating new tasks? AFAIK salesforce is only giving warning upto some level about the storage exceeding and still allowing to create new records. Is this wrong?

We are doing somethings based on recurrence tasks and experiencing some odd behaviors, data storage is full at system overview.

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This is not true!

SFDC does not allow you to use unlimited data storage. It will start showing warning when you reach the limit and it will allow you to use some extra space (generally 5-10% extra) but beyond that it will it will not let you create any data unless you do some clean up or buy extra space.

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