Wow... That little computer is really giving you a run for your money.
Let's see here... you have a somewhat working XP, but no room. OK, delete stuff it can run without.
Make some room... you need about 14 MB free.
You get to 100% and the format dies? or something like that?
If you can run Xp on the old drive, and have disk manager "see" the SSD, then install the program from the CD you made from the ISO I supplied.... if it runs.. you said something about nothing runs..
If you can install the program (Chooser.exe on the CD), have that program partition and format the SSD. Maybe it will do a better job, worth a try, nothing to loose, nothing to buy, but you do need 14MB to install it.
Empty and then disable the recycle bin, that will help.
Track down the system temp folder and empty that too. It's buried in Docs & settings and is hidden (of course, thank you Microsoft [:tigsounds:1] )
The more I read about those little computers, the more I'll stay away from them. Some have 2 SSD's (4 & 12GB) and some have just 12GB and still some others have a single 16GB drive.. What are they thinking?