Every time I download something using IE8, the file is downloaded to temporary folder and then copied to specified location. If the size of file is larger than the space remaining on the system drive, IE8 still downloads the remaining file and keep it in RAM, only to throw it away later. So, I usually end up with only 1.5gb of file size (that's the amount of free space in my system drive) even if the downloaded file is more than that. This problem happens with only the Windows 7 beta and not with Vista.
When a path is specified to save a file, it should be downloaded directly to that location, instead of temporary folder. Temporary folder should be used only when I select 'open' instead of 'save' in download confirmation dialog. Also, if not possible, atleast cancel the download if file size exceeds the limit of system drive free space. I don't want to download 2gb of data only to keep it in RAM for a moment before it gets deleted.
Although it would be best if we can have a download manager kind of utility to view the old downloads too.