this is what i did. when you get to this screen in the windows setup.
http://www.blackviper.com/Articles/O.../image1_4.html
creat your partitions there. press c. make a 40 gig partition. press c again to make a 160 gig partition. then set up windows on the 40 gig partition. when windows is finished installing. go to my computer. right click on the 160 partition and format it. and you done! NTFS is better than FAT btw.