I stumbled across several floppy discs that were formatted years ago using Windows 98's Drive Space 3. I am running Windows XP, Service Pack 2 and need to decompress them so I can resave them to a CD. Any ideas???

DriveSpace was designed to work with the FAT12 and FAT16 file systems and cannot be used with drives using the FAT32 or NTFS file systems.

Your best bet is to
1) Find a Windows 95 machine utilizing DriveSpace 3.

2) Find a 95 bootdisk which utilizes DriveSpace 3.

3) Search the web for (3rd party) utilities which will read these floppies.