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XP claims there's not enough space on the partition

I am trying to setup another XP Pro Installation using NTFS but every time I try to do, it keeps telling me there is not enough space on the partition that I selected. If I look at the Partition it tells me that only 765 MB is free space although it is a new partition with nothing on it! Hard Disk Configuration: 160 GB Maxtor IDE Drive Partition 1: Drive C - 25 GB - Fat 32 - Has an existing Win XP Pro installation on it. Partition 2: Drive D - 110 GB - Fat 32 - Data Drive. Partition 3: - 25 GB - Used Diskpart from Installation CD to create NTFS Partition. Can you tell me why I'm having this problem?
Try downloading Maxtors Big Drive Enabler from http://www.maxtor.com/en/support/downloads/big_drive_enabler.htm. This small utility enables support for drives larger than 137 Gigabytes in Windows 2000 Service Pack 3 and XP Service Pack 1. The utility is required anytime a Hard Disk Drive larger than 137 GB is connected to the motherboard's ATA bus, regardless of any system BIOS that supports 48-bit LBA.

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