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OK--we are getting closer, but you will still have to be more specific in what you are doing.
Do I understand correctly that you are able to boot and run the live CD if you do it from VMWare? Regardless, lets save that option for later.
Some semantics:
Booting from live CD is not installing---the computer will only read from the CD into RAM (memory) and will not **install** anything on the hard drive.
Installing Linux means to copy it to the hard drive (in its own partition), and can be done AFTER booting from a live CD, or after booting from a CD that is designed for installation only.
So:
Can you boot the computer from a live CD? If not, tell us in detail what happens. (Don't use VMWare for now.)
Regardless of how you INSTALL Linux, you will need to re-size your Windows partition (the big one). If the computer has been used a lot, you might need to de-fragment also. I think the best way to resize the partition is using a tool like GParted. This very well may be on one of your live CDs, or it is available as a standalone CD.
You won't get far with any of this if the computer won't boot from a CD---so we need to fix that first.
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