only 300 mb free on the OS drive is *begging* for trouble from windows. begging.
You might consider moving your swapfile to another location, a different partition that you have some more space on, say a couple multiples of the max RAM you have in that machine. You'll still need to have more than pocket change like that for free space, but it might let you gain enough room to maneuver on C:
Look for setttings-Virtual Memory. There's a tutorial on it somewhere, I don't have one at hand. Not very difficult and not very risky.
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