The installation program should auto-detect that your Treo has an expansion card and automatically copy some of the files to that. But it's not perfect, which is why we have that note on the download page about using the manual installer on some models of Palm. Perhaps we should expand that to cover the Treo 600 as well. Anyway, if you try the manual install it should definitely work, though before you do that you might want to go into your Palm Desktop user folder (c:\program files\palm (or handspring or palm desktop)\your username) and delete the "CardInst", "Install", and "Quick Install" folders - that should get rid of any files that are still queued up to install from the Automated system.
We seriously considered getting rid of the automated install option altogether with PlecoDict 1.0, but we know some people really like it so in the end we thought it best to leave it in but warn people about using it.
And while we didn't specifically choose to make the unlocker that big (it had to be to accommodate the handwriting recognizer data file, which we were contractually obligated not to bundle with the demo version) it actually seemed like a pretty good idea, since it forces everyone to have at least a MB or so of free memory on their Palm after they install PlecoDict, which is about the minimum amount we would recommend if you've stored the dictionary databases on an SD card or Memory Stick.