The 127GB is proper when you use your XP CD. If you had a XP SP1 or bettery yet the XP SP2 CD, you could create the full size on install. But without a proper XP SP1/2 CD you can move ahead, install the OS, apply the SP2 and then you can partition, format the remaining space.
Nothing busted here.
Read http://www.48bitlba.com
Bob
I just assembled a computer, after a lot of trouble powering it up I got it running but my problems did not end there.
I formatted the hard disk using Maxblast (which I should have done by using my WIN XP CD but too late!). Its a 200 GB Hard disk, 8MB cache but it only shows 137GB.
I read the literature and it says there that it can be corrected by installing Windows XP with Service Pack. I tried to do that by using the setup bootdisk I downloaded from Microsoft but when I did it gave an error mesaage that says biosinfo.inf could not be located. How can I resolve this and proceed with the installation of my OS.

Chowhound
Comic Vine
GameFAQs
GameSpot
Giant Bomb
TechRepublic