Go to C:\Documents and Settings\"USER ID"\Local Settings\Temp (you may need to modify your settings to see hidden files and folders)
Select all files - while holding the shift key hit delete key
This will delete files avoiding the recycle bin and should not require temp disk space which is causing your system to fail
This should free up quite a bit of space without impacting any programs
If you get any errors skip the files mentioned
To avoid problems and get started you may want to close all apps and start with files starting with ~ and dated prior to today