Low Disk Space Problem

I'm getting a message about low disk space, while I have the following amount of space on my drives:

320 gig hardrive:
C:\
Free - 2
Used - 29
E:\
Free - 7
Used - 207

300 gig hardrive:
M:\
Free - 252
Used - 45

And Electric Sheep is installed on M:\, with plenty of free space. Any idea why I'm seeing this message? Is it checking C:\ for free space instead of M:\?

Thanks!

AFAIK the sheep are

AFAIK the sheep are downloaded on the "Electricsheep" directory, inside the system32 directory.

Unless it's changed on vista.