Difference between Primary, Extended, Logical Partition

Windows 7 is coming pre-installed on my new PC from Dell. It has two 500GB HDDs.

I want to partition the first drive into just a couple of partitions. I guess I will have to shrink the main partition to about 100GB for the OS and apps.
But my question is: that partition with the OS and apps will be a 'primary' one...what will my next couple of partitions be? Logical? Extended?

I'm not sure how to decide what type of partitions to have. Any help would be great.
Thanks!

It depends on whether you intend to ever add another OS to your system, for it would also need to be on a primary partition, but I would recommend using the second HD for that. Extended partition is merely a foundation necessary for one or more logical partitions placed in it. Once you have decided on the number of primary partitions that you need, make the rest of the drive an extended partition, and then as many logical drives as you want within.

Jonathan King said:

They both should be Primary. The first 4 partitions can be primary. After that, you need to create a logical drive, which would be your 3rd partition. In the logical dive, you can create unlimited extended partitions.
The advantage of a Primary partitions is that you can boot from it.

Hmm, you did exactly the opposite as I have done, extended within logical drives, I don't understand that.

Ok, thanks. So it doesnt matter if a partition is primary or logical, in terms of performance or anything else?

seekermeister said:

Once you have decided on the number of primary partitions that you need, make the rest of the drive an extended partition, and then as many logical drives as you want within.

So, can all this be done in windows 7, or do I (should I) use a third party partitioning program? If so, what is one I can use on Win7 64-bit that is free??
Thanks alot.

No need for a third party program for such basic tasks, just use Disk Management.