How can I turn off legacy file vault when it needs additional 170 GB free on a HD that is only 250 GB?

I am trying to migrate to a new Macbook Pro (OSX 10.8.3) and I cannot migrate files over from my prior Macbook Pro (OSX 10.7.5) because of legacy file vault being on. When I try to turn off Legacy Filevault on old computer, it says I need to free up 170 GB of HD space. I only have a 250 GB HD to begin with! I don't see how I can possibly free up that much space. I need help!

Use a external storage drive and copy all your users files there, then Trash > Empty Trash the originals, then reboot and try Filevault again.
Most commonly used backup methods
Note that any +4GB sized files will not transfer to a FAT32/MSDOS external drive many are formatted too.
You first need to change the format of the drive and in doing so, will erase all data on it.
Drives, partitions, formatting w/Mac's + PC's

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