This guide should help you:
http://apcmag.com/how_to_dualboot_vi...lled_first.htm
Use Vista's own shrink tool to minimise the Vista partitions and then install Ubuntu 8.10 in the remaining hard drive space.
After installation, Ubuntu 8.10 will automatically put GRUB on MBR so that you can dual-boot both OSs.
Instead of choosing “Guided-Use the largest continuous free space”, you could select “Manual”. This is very useful if you wish to have a separate home partition (/home).
First create a (Primary) allocated Extended partition (sda4) in that continuous remaining (non-Vista) free space.
Then within sda4 create 3 (or more) Logical partitions (sda5, sda6, sda7).
So now in addition to sda1, sda2, sda3 for Vista, we require:
sda4 allocated Extended which contains 3 Logical partitions (ready for Ubuntu 8.10):
sda5 ext3 root /
sda6 linux-swap
sda7 ext3 home /home
Use Ubuntu's partitioner to create the above partitions.
Remember to format partitions sda5 and sda6 and mount them on mount points / and /home respectively. sda6 the linux-swap partition is not formatted and has no mount point.
For sda5 I would allocate about 12 to 15GB. For sda6, about 2GB. It is up to you to decide how large you want make sda7. If you have tons of space remaining then consider making additional spare logical partitions (sda8, sda9 etc).
If you are not sure about any of this then Google for a tutorial on Linux partitioning first and also backup important data. Vista also has provision for making a Recovery disk!