I'm trying to get on Live with my box that has a Xenium ICE and a 250 GB HD.

When I load the retail Xbox kernel and load live, it tries to update and tells me that it doesn't have enough space on the drive to download the update.

I looked up the error message here on the forums, and found that other people with the same message simply had to delete some of their files on "C", and then it worked.

I booted back into XBMC (that I run as a dashboard), saw that I had 0MB free and deleted some extra files off of C, freeing about 50MB. I tried the update again, and still no go.

I went back into XMBC and it told me that I, again, had 0mb free on drive C!

Where is all that space going?

Hmm weird, What do you have saving to your C: ? Do you have any streaming stuff that goes to a folder on there? That's the only thing I could think of.

But if you tried the update again it could be the partial data from the update taking up that additional space. Try to clean up as much as you can on there and move stuff over to a F or E drive