This is a small matter but needs to be covered, If you have a bigger HDD that 129GB but windows installation setup only detects 129GB to partition.
The problem here is that the installation disk is too old (no service packs slip streamed with disk.
Need to find disk with at least Service pack 2 or higher windows XP version or use "Nlite" and add those service packs to your version. Then just write and use new disk.
Hope this Helped, Enjoy!!