I have the same problem.  I am trying to install ubuntu on a XP machine.  I am 
trying to build it as a dual boot resizing the 60 gig drive.  I have tried 
5,10,15,20,25 and 30 gigs as the partition.  I am doing a network install with 
no removable media.  I cannot really post any debug information. I am following 
the instructions outlined in:
https://help.ubuntu.com/community/Installation/FromWindows

I would really appreciate any help getting past this bug.

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on installation "prepare disk space" gives error "failed to create enough space 
for installation"
https://launchpad.net/bugs/54778

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