You can trim down the install space needed quite a bit using the custom install options as long as you are willing to re-install your OS from scratch.
You have to add in quite a few updates once you're up and running anyway.
Printer drivers, language files, optional apps like Internet Explorer,
etc should help you set up a relatively clean, lean machine.
If you're good about housekeeping or have and external drive,
the 60 GB HD should be fine.