I would like to know if its safe to do this to not only be able to have 4 Prime Partitions.Afterwards I it would look like this when finished if possible all booting by GRUB.Should I install Windows XP first and does this effect the BIOS when the Dell Utility is Deleted.

Windows XP
BSD
Linux
Solaris

Concerning your BIOS, I would imagine that it should be fine to delete. Then again, you're pc might be a DRM experiment. You never know.

(Personally, I'm the type of person to try it anyway. I'm constantly pushing the limits of my system.)

It should be safe. But isn't that partition your system restore files?

Depends if you got a "full" copy of XP with the machine, or a OEM/Vendor restore CD.
If the latter, you might need the partition.

I have the Windows XP Install from dell and the System Restore cd that came with the computer.

It's prefectly safe to delete. The purpose of the partition is when you turn on the computer for the first time you have to push a few buttons to agree to their terms. The files that make you do that are located there.

At some point they started putting the system diagnostic tools there as well. Those can be easily downloaded from support.dell.com so it's perfectly safe to remove it. I've done it hundreds of times.

Edit: I assume you are about to reinstall XP, because if you just delete the partition and move the XP partition to the beginning of the disk you will have problems. The boot.ini file will be wrong for one and other things could go bad as well. Good luck.

I have the Restore Cd that is straight from Dell and the Windows XP also so I don't even need that parititon