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You can rightclick C in Disk mgmt to Shrink it by as much as you want. If you need more, use free Partition Wizard bootable CD Resize function.
Next use PW CD to rightclick on the Unallocated Space that you made to Create a New Logical partition, name it Windows 8, no need to assign a letter, click OK, Apply both steps.
Boot the Win8 installer, choose your new partition and install.
He has alreay shrunk the C: drive and as you have used the PW CD I was going to pm you today to ask you if PW can resize a Extended Partition?
He already has 4 partitions so he can't create a new one but if he could extend the Extended Partition then he could create a new Logical Drive in it, unless he deletes the current Logical Drive and Extended Partition then he can use all the Unallocated Space to create a new Extended Partition.
If you shrink C then PW will create a Logical there which is the same as adding it to an Extended Logical partition. It isn't necessary to Resize the Logical Extended first to create a sub-partition within it. PW treats these as separate partitions although they must be contiguous. PW also views Logical Free Space and Primary Unallocated Space as the same.
I managed to delete one of my partitions, and create another one. However, when I try to install Windows 8, I get this error message 'The selected disk has an MBR partition table. On EFI systems Windows can only be installed to GPT disks' Should I use something called MDT 2010 to install Windows 8?
You must follow these additional steps when installing to UEFI (Unified Extensible Firmware Interface) - Install Windows 7 with - Windows 7 Forums