Thanks for your reply and suggestion.
After doing some research on the net, I decided to include the 130 GB space in the extended partiton.
Also I have left about 300 MB as unallocated which I plan to use as primary partition for the /boot partition of Fedora.
I hope this works for me! Please let me know if it won't work as I still haven't moved any of my data to the 1 TB drive.
Actually, ickymay, I will be using Windows primarily and Linux would just be off and on kind of usage. Also I want to keep my data and OS on separate partitions. And since Windows would be my primary OS, that's why I want to keep it on my 160 GB HDD.
Thanks again, ickmay.