Win95 Unable to Condense > 500MB Data

Win95 Purchased 1996. 1GB Hard disk. Now 60MB free. 16MB RAM. Need more disk space. Removed Temp files etc. still need more. Want to Condense/DoubleSpace.
Gat error “Drive C cannot be condensed because it contains more than 500 MB Data”
ID Number DRVSPACE 117

Have I hit a brick wall!

Alan