Changing primary partitions to logical

So, I want to have Windows 7 Home Premium 86x and 64x versions installed on my PC with dualboot. I have 86x version of Windows 7 installed already. So, for 64x version, I have to create a new partition. The problem is, I already have 4 primary partitions, so I can't create a new one (I read somewhere that Windows have to be installed on a primary partition). Here is the picture:
(Don't mind disk 2, it's just the external drive).

If I try to create a partition on "Unallocated", Acronis Disk says this:


My question is, which of these partitions on disk 1 can I safely convert to logical? If I am wrong here and I still won't be able to create a new primary partition for Windows to be installed on, please let me know. I'm really not so good at this things.

Do you suggest method 1 or 2?

EDIT: OK, I didn't read carefully, the method 2 is the one to use.

Arc said:

Edit : I guessed that windows is not installed in Local Volume; it is in boot. I dont ues acronis. If you cam post a snip of your disk management window it would be easier to understand the situation more properly .

Ok, but the language is Slovene, I hope you will understand a bit.

Arc said:

Acronis says the last partition is of 1001 gb, but disk management is saying it to be 1 gb (the OEM partition) ! Gb. There must be something wrong in my understanding the Acronis window.

Better you create a new partition in the unallocated 97.66 gb space, and format it as logical.

Yeah, but will I be able to install Windows 7 x64 on a logical partition?

Holy over-partitioning, Batman! Have you considered drastically simplifying? First off, I'd ditch the dual-booting and go with a VM, especially since you are dual-booting the same OS. You don't need to worry about testing anymore or have a fear of going to x64. Second, if you make recovery discs and store them safe, you an do away with recovery partitions and regain the space.

K.I.S.S. is the philosophy I follow.

The problem with virtualization is that I can't use all RAM available.

You could if you did a clean install with Windows 7 x64 only. Then if you needed to run an x86 OS, you could do so easily.