Spurious 'low space' warning on XP mounted volume

I have created a mounted volume in an empty folder on my XP driven C:
drive. The C: has 5 GB free and the mounted volume about 60 GB. When
installing a rather huge game - +/-6 GB I think - the installer sends a
message that 'There is not enough space to install these option(s).
Please free up some space...'.

Has anyone seen this message in these circumstances before and did you
manage to fix it?

 

Is it a FOLDER, or is it a PARTITION? Two very different things.

If if is a folder, that is nothing more than a logical part of your
existing C:\ drive, and it should show whatever free space you have on C:\
rather than jillions of gigabytes. So I think it's a partition. So:

If it is a partition, from where did you get the drive space to create it?
Did you use a partitioning tool, for example? If so, which one and what
did you do with it?

This will do for starters: Post back and we can take it from there.

 

Yes, I am aware of the difference between folders and partitions. I am
also familiar with the term 'volume', coming from a Netware admin
background.

Following standard XP practice, I created an empty folder in C: and,
using 'Disk Management', created the volume/logical partition 'Games' on
another HDD which was mounted to the said 'Games' folder. As said
above, the system/installer can't spot that my 'folder' has the capacity
to hold its intended load even though the nominal disk has not.