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well like it says, you don't have enough free space... I'd assume that you've not resized the partitions and what yo ucall "free space" is actually already being used by your XP partitions, just with no files there. You need to shrink down any NTFS partitions to have completely unpartitioned space. If you just click on the manual partition option then you'll presumably see the lack of free space.
and don't bother installing FC1, get FC4 instead.
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