It would be better to free up space.   You are running a good risk of
corruption running low on space.  There just might be a reason MS put
that warning there.

Description of the Low Disk Space Notification in Windows XP
http://support.microsoft.com/kb/285107/en-us

There is a program called TweakUI or TweakXP. One of the 2 is good,
the other is a bit crap.  They can toggle warning bubbles. Should
include that.

It also toggles the bubble that tells you your computer is not
protected by an anti-virus.

I am pretending that you are smart enough to know what it means, and
that you can stop it popping up by increasing free disk space ?
TreeSize by Jam, could help you find what is taking up the space.
And this one can help too,  it offers a different view.
SequoiaView  http://www.win.tue.nl/sequoiaview/

First use Windows 'Disk Cleanup' to create more space on your C: drive. Also
empty the Recycle Bin.

You can free up disk space more space by reducing the number of
'System Restore' points:
Select Start/Control Panel/System, then in the System Properties window
click on the System Restore tab.
Next select the drive letter where Windows is installed (usually C:),
Then click on the Setting button
Now in the Drive Settings window move the Disk space usage slider to the
left to reduce the amount of drive space System Restore points will use.
This will remove some of the older restore points and free up some space.

Disable Hibernation and delete hiberfil.sys file (If you have it enabled):
http://www.mydigitallife.info/2007/10/25/how-to-delete-and-remove-hiberfilsys-hi
bernation-file-in-windows-xp-and-vista/
and:
http://www.microsoft.com/windowsxp/using/mobility/getstarted/hibernate.mspx

Next if you still need more space:
Remove the files used to uninstall updates to Windows
These folders and associated files in these folders are safe to remove,
however once deleted you will no longer be able to un-install a patch or
update that was associated with the deleted folder/files.
I would keep the most recent set (last two months just in case) of folders
and delete the older updates.
As a safety net I burned these folders to a CD before deleting them.
These files are located in the Windows folder and have folder names
like $NtUninstallKBXXXXXX$.
They are hidden folders so enable viewing of hidden files in Windows
Explorer.
Warning: One folder you should not delete is: $hf_mig$
Also See Doug Knox's page on this issue:
http://www.dougknox.com/xp/utils/xp_hotfix_backup.htm

Finally - You can reduce the size of the Internet Explorer Disk Cache:
How and Why to Clear Your Cache:
http://www.microsoft.com/windows/ie/ie6/using/howto/customizing/clearcache.mspx
Just follow the instructs but instead of increasing the size (as stated in
the article) decrease it.

If you have more than one partition or drive then:
How to Change the Default Location of Mail and News Folders:
http://support.microsoft.com/kb/175037

Change the Default Location of the My Documents Folder
(Example: move it to the D drive)
See: http://support.microsoft.com/kb/310147
Also:
http://www.techsupportalert.com/how_to_move_my_documents.htm

How to move the Spool folder in Windows XP
http://support.microsoft.com/default.aspx?scid=kb;en-us;Q308666

JS

- Uninstall unused software.
- Move your data files onto removable media.
- Get bigger or more hard disks.
- Add more system RAM and decrease the size of the pagefile.
- Empty out the Recycle Bin and lower its size (it can't use more than
4GB despite the slider's setting but even that is probably way more than
you need).
- Use utlities like DiskPie from PC Mag or TreeSize Free from
jam-software.com to see where the largest files are consuming up your
disk space.  Decide if you need them, if they can be deleted, or if they
can be moved off the hard disk(s) onto removable media.
- Save any downloads, like for program installs, onto removable media
instead on your hard disk(s).

Gerry

Free up some disk space . You shoulh have at least 20% free.

If your drive is formatted as NTFS another potential gain arises with
your operating system on  your C drive. In the Windows Directory of
your C partition you will have some Uninstall folders in your Windows
folder  typically: $NtServicePackUninstall$ and $NtUninstallKB282010$
etc. These files may be compressed or not compressed. If compressed
the text of the folder name appears in blue characters. If not
compressed you can compress them. Right click on each folder and
select Properties, General, Advanced and check the box before Compress
contents to save Disk Space. On the General Tab you can see the amount
gained by  deducting the size on disk from the size. Folder
compression is only an option on a NTFS formatted drive / partition.

There are many other options for increasing free disk space on a Windows
partition if you are reluctant to increase the size of the partition.

The default allocation to System Restore is 12% on your C partition
which is over generous. I would reduce it to 700 mb. Right click your My
Computer icon on the Desktop and select System Restore. Place the cursor
on your C drive select Settings but this time find the slider and drag
it to the left until it reads 700 mb and
exit. When you get to the Settings screen click on Apply and OK and
exit.

Another default setting which could be wasteful is that for temporary
internet files, especially if you do not store offline copies on disk.
The default allocation is 3% of drive. Depending on your attitude to
offline copies you could reduce this to 1% or 2%. In Internet Explorer
select Tools, Internet Options, General, Temporary Internet Files,
Settings to make the change. At the same time look at the number of days
history is held.

The default allocation for the Recycle Bin is 10 % of drive. Change to
5%, which should be sufficient. In Windows Explorer place the cursor
on your Recycle Bin, right click and select Properties, Global and
move the slider from 10% to 5%. However, try to avoid letting it get
too full as if it is full and you delete a file by mistake it will
bypass the Recycle Bin and be gone for ever.

Select Start, All Programs, Accessories, System Tools, Disk CleanUp to
Empty your Recycle Bin and Remove Temporary Internet Files. Also
select Start, All Programs, accessories, System Tools, Disk CleanUp,
More Options, System Restore and remove all but the latest System
Restore point. Run Disk Defragmenter.

Select Start, All Programs, Accessories, System Tools, System
Information, Tools, Dr Watson and verify that the box before "Append to
existing log" is NOT checked. This means the next time the log is
written it will overwrite rather than add to the existing file.

The default maximum size setting for Event Viewer logs is too large.
Reset the maximum for each log from 512 kb to 128 kb and set it to
overwrite.
http://support.microsoft.com/kb/308427/en-us

--
Regards.

Gerry
~~~~
FCA
Stourport, England
Enquire, plan and execute
~~~~~~~~~~~~~~~~~~~