If you attempt to install Microsoft Windows XP SP3 on an Intel-based Mac (Mac Pro, Mac Mini, MacBook, MacBook Air, MacBook Pro, or iMac) that is running Windows XP SP2 via Boot Camp, an “Out of disk space” alert may appear even when there may be adequate disk space to install the update.

Original post:
Boot Camp: Installing Microsoft Windows XP Service Pack 3 (SP3)

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