I *JUST* finished reinstalling Snow Leopard on my freshly-zeroed 500GB drive, and I get this error. I have 285GB free. How can this not be possible? I reformatted thinking I would fix this error.
It has nothing to really do about bootcamp not being able to move files. Boot camp doesn't move anything. All it basically tells the disk is "allocate this continuous space as a separate partition." The keyword being allocate.
Basically, there is data in that area, possibly system files. Basically, you want to allocate more space than there is continuous free space. Instead of going ahead and partitioning the area anyway, which would result in losing that data, it's throwing up the error.
Basically, you can try your hand at defragging the data. If you just installed SL, then I wouldn't be surprised if there were some system files in the space.