Windows 7: Partition File System type on new OEM HD

I have Vista running on Disk 1 as C:, getting ready to multi boot with Win 7.
Just installed a 1TB Seagate Barracuda 7200.12 HD (OEM) as Disk 2. The first partition on the disk is Unallocated, 7.84Mb, Status None and Type Logical.
If I want to install Win 7 on Disk 2 in it's own partition what settings should this first partition have. (I assume that this is the Bootmanager).

On Disk I it is set as FAT16, Status None and Type as Primary.http://www.sevenforums.com/images/smilies/cry.gif

The unallocated space is reserved by any MS effort for partitioning for changing from the Basic type primary or over to the Dynamic. When using a 3rd drive partitioning program like GParted you won't see any mbs reserved for conversion of volumes. Seeing 6-8mb reserved is actually the expected size.

The creation of the new volume in the Disk Management tool or using the drive tools on a Windows disk however will see a small space like this reserved for that purpose and is nothing to worry about. A fast and easy to take care of that of course would be simply be moving the present primary froward those few MBs and extended it out at the rear while booting live from a GParted cd.

My question is what settings should this first partition have?
Should the File System be set at FAT16, Status at None and Type to Primary?

For seeing a fresh install of Windows on the drive you would need a primary type partition to start with. The partitioning program you use will have that option if not using the Disk Management tool or drive tools on the 7 dvd during the installation itself.

If you are still unsure simply delete the present and see a new primary created in it's place when going to install 7 on the drive and select that drive using the custom option. You may run into the first system reserved 100mb boot file/BCD store partition however.

As far as the small amount of unallocated drive space the MS tools always allow room for volume conversion and you wouldn't have need to set anything there since the partitioning program or method used will determine the type of partition and make it active.