Hi,

Usually you  can create  Four Primary partitions on a hard disk.

The Extended partition is the way of creating the partitions logically in a
primary partition if you need to have more than Four partitions .

So you can create three active  partitions  and the rest of the partitions
as  logical  partitions  in an  extended partition.

The size of (hd0,2) partition can be how many logical partitions you want to
create.

You can use the rest of the 80GB space on your hard disk for Linux.

You don't need any extra utilities like ParteD to create partitions.

The Distro which you are going to install will have the partition tool but
need to select the option "Create Custom Layout" instead of going for
"Automatic Configuration".


Thanks,
Narender Rao

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