I was thinking about getting a 60gb SSD but I don't think there will be enough space for OS, games and applications. What do you guys think? Also, will it get slower if the SSD is running low on space?
Absolutely it's enough for OS and a game or two and an app or two.
Yes, it will begin to slow during write operations when it has difficulty finding full blocks but this is not something I would worry about with a sandforce ssd or an intel that is not raided.
I am considering a 60 SSD to just run windows 7 and ill get a 500GB HDD for everythign else. Price on a 500GB HDD w/ 7200 rpm is relatively inexpensive.