Privateer 2 and 60 Gb HD hostility.

A friend of mine tried to install Privateer 2 (Win95) recently, but the installer complained that he didn't have enough diskspace left. So much for those remaining 20 Gb... I'm fairly sure he's using FAT32 (OS: WinXP), the installer has been set to run at any Win9x-compatibility, and still claims he doesn't have 34 Mb remaining. He shoved in a 20 Gb HD (ok for me - using Win98), but there was no change. Any ideas?
 
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