|Yes it would. before Windows XP there was a built-in compression utility called "DriveSpace" which could be used to create more free space, but it was discontinued when XP was launched.|
That means the only way to create more space is to "zip" individual folders, but they would then have to be "unzipped" manually in order to access the contents.
And if you zip a program folder, the program won't work.
Clearly, zipping folders & files is something you only do for email attacments or for archiving stuff you don't regularly need access to.
These days, with applications requiring vast amounts of disk-space & digital photographs eating up even more space, it's pointless trying to delay the inevitable.
You should create a disk-image of your entire hard drive on to an external USB hard drive, then replace your computer's hard drive with a new, higher-capacity one.
Finally, write the disk-image to the new hard drive, then restart your PC.
You'll then have an exact copy of Windows just as it was before, with all the same settings and applications, but loads more free space.