What you want to do about it...
It's a laptop, the drive can be upgraded but that really isn't the best solution as I suspect there is just one drive in there with E: being a Partition.
You have 60 GB on the C: Partition, you could move stuff to that Drive. Perhaps you cold burn data off to a couple of DVD's permanently instead of having it on the laptop. Or you could splash out on an External USB Drive.
Last but not least you could be ruthless in your quest for more space by checking what programs and files you Really need on there and getting rid of those that you don't.