Partition magic works great for me, i use version 7 and windows xp pro.
I have installed Mandrake Linux 9.0 with no problems. This version of Mandrake has a great installer, and it practically does everything by itself.
I suggest you create 2 new partitions with Partition Magic ( one for swap and the other for the os) and then format them with the proper file systems.
Note: if you want to dual boot, install windowsXP pro first and linux last then you will have the...