Here is a nice tutorial on formatting and partitioning your hard drive. Link

Partitioning your hard drive has never been easier. Free options, including the Windows install disk, make this once monumental task a fairly simple two-click experience that many of us don’t spend nearly enough time thinking about when we first install our OS’s. It can sometimes be difficult to anticipate your storage needs up front, and many users just assume they are stuck with decisions they made long ago.