On an mbr disk, you can have a maximum of 3 primary partitions and 1 extended partition (within which you can have lots of logical volumes) which you already have, hence the error.
I suggest you use a 3rd party tool like partition wizard to pull the existing logical to the left to use the unallocated space.
http://www.sevenforums.com/tutorials/93322-partition-wizard-use-bootable-cd.html
OK I looked around some and theres a program called testdisk that might be what Im looking for, but I dont know how to use it so is experienced with it feel free to post.
edit: problem fixed using this gem