No, what it actually means is half of the remaining space available
after accounting for the fact that you've got to get an Ubuntu
installation in there too. The current fudge factor for this is about
2.21GB; (7.78-2.21)/2 is 2.785.
This should all be a lot clearer in Hardy, now that Evan has
Triaged to Incomplete. Perhaps a swap partition was created so the
actual install partition is smaller than expected?
** Changed in: ubiquity (Ubuntu)
Status: New = Incomplete
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The guided installation option computes new size wrongly when it's going to
shrink a NTFS partition
** Tags added: partman
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The guided installation option computes new size wrongly when it's going to
shrink a NTFS partition
https://bugs.launchpad.net/bugs/163541
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Bugs, which is the bug contact for Ubuntu.
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ubuntu-bugs