Defrag has nothing to do with setting partitions.
In Windows XP/2K, once a partition is set you cannot alter it without totally erasing the previous partition. Which will erase all of your data. Unless you pick up a 3rd party program like Partition Magic, which can alter partition sizes on the fly while the OS is running.
Plus, have you researched whether there will be compatability issues running one hard drive with two different file systems on two seperate partitions? I know FAT32 for Win9X would not allow you to create extra partitions on the same drive if they were non-FAT File Systems. NTFS might not give you that headache tho. Might be better off finding a small hard drive and installing it there solo.
