I know this doesn't answer your question directly, but the partition doesn't actually have the full 128mb available, about 7mb is used for system stuff (nand, etc.) that can't be changed. So the max partition size is 121mb (which the installer mentions), so you only had 5mb available.
I just make my root partition the full 121mb and keep all my pim data, and other stuff on my SD card. That way nothing gets lost (unless I lose my card), and quake installs just fine