IIRC, the SimplyMEPIS installer requires 3GB of disk.
My experience is that 4-5GB is much better. Plus swap of course. I think SimplyMEPIS recommends 1GB.
I haven't run W2k (or any other "Winders (tm)
") for almost 2 yr., but my memory is that It doesn't need anything like 15GB of disk space. Surely you can carve another 3GB or so out of "C:".