My previous hard drive broke down and I had to replace it. Although, that may seem bad, I got the option to partition the hard drive, so I can finally install a version of Linux. I am new to Linux (first time installing). I am downloading Dreamlinux 2.0 Works Edition. If anyone can help me do this, I will be very grateful. (I have my partition as follows: 120gb for Windows Xp/~30gb for Linux)

You just install it and follow the official instructions..

It might be a better idea to not create the Linux partition at all (if you already did, delete it). The Linux installer should see the unallocated space and create all the partitions it needs automagically.

Most distrobutions come with fdisk or cfdisk. When you boot from your CD, you can create a partition with that before you install linux. If you already have a linux partition (from PartitionMagic or similar apps) then you can use it, but as the previous poster said, it might be a better idea to use cfdisk as that will do a better job checking for bad blocks and what have you. Just make sure to leave ~512mb for your linux swap partition.