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I have installed the bootloader using the automated utility, but when I try to install the firmware the installer say there's not enough diskspace.
I tried doing the manual install but it fails to convert the OF
I got the patched OF done by placing the utility in the same directory as the OF.
It sound as if you are not doing this correctly. The utility needs to be downloaded to your PC, not to the Sansa.
When I attach it (in "MSD" Mode) it shows up as a 16MB drive
I got the patched OF done by placing the utility in the same directory as the OF. Still, it's 15.3MB, not enough room for both the patched firmware and rockbox
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