Run the Linux install and you will be given the option to save your XP
and use part of the free NTFS space to have GParted partition your
Linux Ext3 and Swap partitions.

Do a Windows Defrag before installing Linux, to allow maximum free
NTFS space. Then you can give a major portion of the free space to
Linux file system.

Throw away your old partitioning software. You'll be using GParted in
Linux for all your further partitioning or resizing of all file types.
It will even make FAT16 or 32.