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Well, I'd say put Windows and Installed Programs on the same partition. No point in seperating those. After all, if you reformat, it's usually better to wipe everything out and start fresh. Keep everything else on a separate partition so you don't lose it when the comp eats shit.
As far as Partition Magic, it's worked great for me, but as with anything, I've heard complaints from others. You should be able to merge two partitions together or, more ideally for your situation, just borrow space from your Installed Programs partition and give it to your OS partition. It's instructions are pretty basic and it has wizards to lead you through the steps.
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Bad Luck City
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