Pocket PC 2003 Emulator Deployment (not enough disk space)

I am trying to deploy a small web service client to the Pocket PC 2003 emulator that comes with Visual Studio 2005/8.  When trying to do this I always get an error stating that the device does not have enough disk space, see below:
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Error      1      Deployment and/or registration failed with error: 0x8973190e. Error writing file '%csidl_program_files%\smartdeviceproject1\system.web.dll'. Error 0x80070070: There is not enough space on the disk.
        Device Connectivity Component      
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As you can see the problem is with the deployment of the .Net libraries, these take all the space on the device (some are over 5MB).  My actual application is very small, in this instance it is a test app that couldn't be any smaller.

For some reason deploying the application copies all imported libraries into the programs directory.  I would of assumed there is some central location where these should be (already?), under the WINDOWS directory for instance.  Is the .Net runtime not installed on the emulator?

Your help is appreciated

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