Partitioning Problem- Your worst nightmare: 1993 Packard Bell - This eats Freddy Kruger for breakfast

Ok, my grandma has a 1993 Packard Bell. It was running Windows95 (barely. I mean, it takes forever to open anything up). It has a 540MB Hard-Drive (I verified it when I went into Explorer and checked the drive properties).

I decided to format and do a clean install. I was going to make a separate partition, so I just went straight to FDISK and erased all Partitions (I did not format before that. Not sure if that matters or not). But I decided to just stick with one primary partition.

So I restart and go back into FDISK to create the new partition and it says that the HD only has 11 Mbytes of space to create a primary partition.

Um... 11 Mbytes? We are missing about 529MB of space?

I tried everything I could think of. Both Fdisk and Partition Manager report it this way. The HD is a Conner CFA540A.

http://www.computerhope.com/hdd/hdd0005.htm

I set the settings in the BIOS/CMOS just like it says:

CYL:1048 HD:16 SECT:63 LZONE:1048

I am stumped.