Yes you need two partitions to run pretty much any linux distro ( your / partition and swap).
I would avoid using NTFS on the partition that you want to share between the operating systems. The read support for NTFS in linux has even been known to corrupt the NTFS filesystem. That is why most distros with any kind of QA testing have it disabled in the kernel by default. Fat32 would be the best choice.
People have a tendancy to recommend the "newbie friendly" distros to new linux users, but if your installing this to really *learn* linux, I have found starting out with a harder distro can really help to show you the ropes. I started with slackware 3.something about 5 or so years ago and it helped me immeasureably in learning how linux worked. This is simply because you have to learn the system in order to get it working usually.
But hey, try em all.. then you can decide for yourself wich one is best for you.
Debian is another good choice that i havnt seen mentioned here yet.
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