If there is more than one partition, it still would not show 108 gigs of usage on the partition he was viewing. Since he did not format the drive, it may have addtional info from a previous install. Download MAxBlast utilites from the web and use that utility to make sure the entire drive is designated for use on XP. It sounds to me like the dirve is only being read at the 137 gig limit.
Noli Nothis Permittere Te Terere!!
EVGA 680i, Dual EVGA 8800GT'S (650/950), 4 gigs OCZ DDR2 1066, Intel Q9450 at 3.8 Ghz, Koolance Water Cooled, Dual Plextor16x DL DVD+/-RW. Dual WD 250gb 16mb Cache Sata 3.0. 3DMark06 score = 19,168.