Hello Designing7, welcome to Seven Forums!
I'm of the exact opposite opinion as theog, though he's my mate!
I think putting a second installation of Windows 7 on the Extended/Logical drive is an excellent idea, being on a Logical drive, the installation won't be able to alter the "System" boot files and the new installation will function just fine.
Then if/when the time comes to remove the second Windows 7 there won't be anything special that will have to be done, you will be able to just format/delete the Logical to 'remove' that install, where if it's on a Primary partition it will not be that easy to remove.
Two very different methods that work almost equally as well, the choice is yours to make and be sure to post back with any further questions you may have and to keep us informed.