Can I give an emulator more disk space?

The compilation of my Compact Framework app (.NET 3.5, VS 2008) failed with this error:

Deployment and/or registration failed with error: 0x8973190e. Error writing file '%csidl_program_files%\hhs\system.data.dll'. Error 0x80070070: There is not enough space on the disk.

Selecting Tools > Device Emulator Manager shows me nothing promising; nor does Project > Properties > Devices.

UPDATE

Vasiliy, is this what you meant? I:

0) Created a folder on my C drive named "VirtualStorageCardForNewHHSCFVS2008"

1) In Project > Properties > Devices > Output file folder, I changed the settings from this:

...to this:

...but now I get different err msgs. If I simply shut down the emulator as soon as it pops up, I get, "The RPC server is unavailable"

Thereafter, on attempting to run it, I get, "Deployment and/or registration failed with error: 0x8973190e. Error writing file '\Windows\NETCFv35.ppc.armv4.cab'. Error 0x80070070: There is not enough space on the disk. Device Connectivity Component"

UPDATE 2

I don't see a "Compress" option in my Project Properties; in fact, the whole collection of members are radically different:

Take all the extra applications off of your Emulator.

It should have NOTHING on it but the essentials. Bare bones, if you like.

So, how do your DLL files get copied over to your device?

Simple! That happens when you start your debugger because your Project will be set to deploy everything it needs and it can compress the files (the compression helps, but it may not be necessary when starting the debugger).