Ahh, in that case I would suggest doing as Mr. B said. Basically hotfixes are there for a reason. If you want to remove them, be sure that you set a restore point first, just incase, as that way you can hopefully put your system bk to a workable state if things go wrong You can always redownload them again via windows update if necessary too.
I personally only ever install Critical Updates, and pick and choose the Recommended Updates to see if anything is relevant to me, but I hardly ever install those, I just choose to hide the ones I dont want via the Personalise Windows Update option.
1.38gb is quite a lot on the system drive, as long as your only going to be using it as the system drive/partition. i.e. not installing games etc. (I assume thats why you partitioned so that you can install other stuff elsewhere?) Almost all software allows you to choose the path to install so that shouldnt be a problem.
Anyway, I've rambled on a lot, hope all this helps.