The way you present your partition information is very confusing. So I'll generalize and you'll get an answer from it hopefully.
From what I can tell, you have two hard disks, one is 3.5G(hda) and the other is 8.5G(hdb). So I'll work from that.
As a matter of intuition, as well as having dual-booted Fedora and Windows, this just isn't enough space for the two of them. You'll probably want another disk very soon if not immediately.
When you install Fedora, you need to pick the fewest possible options that you can to get your install down a few gigabytes. A full install of FC4 took up over 8 gigabytes of space on my laptop. Fedora Core 1 probably doesn't take up that much space. For what you've got going for you I'd say that you need to shave your Fedora Core 5 down to less than 4 gigabytes if that is at all possible. Also remember that Fedora will need a swap partition of (at the very
least) 150% of your RAM. Unless you have more than a gigabyte of RAM, then you'll need that swap partition. I haven't installed Windows in so long I couldn't tell you what an install of Windows will use but I'm assuming that it's around 4G or so.
What I recommend with your limited amount of space is to install Fedora (with swap partition of 1.5x RAM) and Windows to hdb(8.5G drive) and use hda(3.5G drive) as the fat32 data partition and mount it as /home when you set up fedora. That is how you can maximize your space. It will fill up very quickly and you'll most likely need another hard disk soon afterward.
It's possible that the hard disk ran out of space when it was installing glibc.
As for installing Fedora it prefers an ext3 partition. Generally you'd keep the OS itself on a linux filesystem rather than something like vfat. I wouldn't recommend installing to vfat but it's not my decision. Installing it to a fat32 partition is a little strange but I can understand why you would want this. Keep in mind that you would install Fedora to ext3 for the same reasons you would install Windows to NTFS. It's possible that anaconda uncompressed a glibc file too fast or tried something that vfat didn't like and it just hung. Does it always happen at this stage?
If you have enough space for the install and you are using an ext3 partition for fedora then you should not have any problems at all with glibc during
the installation. If you still have problems after meeting those requirements you need to reburn or redownload and burn new fc5 CDs.
Good luck and let us know.