A 500GB HDD is actually about 465GB in capacity. We have no idea how you have it partitioned or what you have installed. What do you mean, "no programs"? If you go to Start > All Programs, there's nothing listed?
XP will actually fit and run with a limited amount of programs on a 40GB drive so you will need to give us more information. How old? When XP installed? Factory system or built? Did it ever work correctly? Recently? Any recent changes to hardware or software? Etc...
You have to be a little bit crazy to keep you from going insane.
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