Not enough free disk space when I have more than 400 MB free.

Definitely not a percentage. I run WinXP quite happily on an 7.4GB drive with room to spare. I recieved this error with 1.8GB free space. That’s 24% free space. I disabled hibernation to boost free space to over 3GB and it installed fine. Re-enabling hibernation still left me with 1.3GB free. So… it only needed .5GB with the options I chose but still demanded 2GB+ (possibly 3GB?) before installing?

Wow. Hard-coded to require 4-6x the drive space it would actually use. I thought Windows was bad…

Notice how the installer message does not tell you how much it actually needs (why?)
In my own test, 2GB is required before the installer is happy.