This is from http://technet.microsoft.com/en-us/library/cc507857.aspx: Many applications couldn’t run within Windows PE 1.0 because they required temporary storage space, and Windows PE was often launched from nonwriteable media such as a CD. Windows PE 2.0 now supports most applications that need to write temporary files by providing 32 MB of scratch space in the computer’s RAM. Any time an application attempts to write temporary files, no matter which folder, Windows PE redirects the changes to the scratch space in memory to simulate the presence of a hard disk. Naturally, all changes are lost when you restart the computer. And this is from me: WinPE 2005 does not allow write access to its system drive X:, even when booted as a RAM disk image. In order to write files in WinPE 2005, you will need to integrate another RAM disk driver that provides writeable space, or write to some other available media (a partition on the hard disk, a USB attached device, a network drive, etc.). WinPE 2.0 appears to allow write access to its system drive X:, but this is not unlimited. Although it seems that you can add, delete and modify files at will, WinPE does this by way of a "write filter", and stores all added and modified data in a scratch space. This works completely transparent as long as you do not exceed the scratch space limit. So, deleting existing files on drive X: does not free space, but in fact consumes space.