HD partitioning forXP/Linux
 

I am wanting to install SUSE Linux on my HD which currently is running XP Pro. I have Partition commander so can pretty much create what I want. I tried creating a separate partition but when it gets to the installation screen it seems to be wanting to use my C: (XP) partition and I dont even see the E: drive where I want it to install Linux. I even tried reformating the E: to ext3 format but it still didnt seem to see it. I saw some info on creating a swap partion, a / partition (what is that refering to) and something else but at this point I would like a little more concrete advise before I trash my XP install.

Delete this new partition you created and select to install Linux in the free space using default partitioning. (Let the installer worry about it),

Assuming you previously had Windows only on one primary partition, shrinking the Windows partition and having "free space" available on the hard drive should be enough to install Linux.
If you have partitions or free space ready it is common to need to use a distributions "advanced partition" option. Otherwise only some default choices are offered. "Advanced" seems to mean you have even the vaguest notion what you want to do. Always cancel and follow up if things do not seem right.
Be aware of Linux drive notation as opposed to Windows drive notation. Simply checking partition location and size can confirm the correct partitions are being selected.
Simply having free space or available partitions is best. Formatting is always best done by the operating system you are installing.
Linux installations prefer at least 2 partitions.
The "swap partition" is equal to the Windows paging or swap file. It should be a percentage of your RAM. Equal or double you RAM is going to be safe. A lower percentage can be okay depending on your configuration and uses.
The root partition ( / ) contains the rest of the operating system.
These are the only two partitions prefered by most linux distributions and all that is need for a desktop install.
It is possible to create and assign further partitions for other directories that otherwise are installed on the root partition. In certain circumstances this is wise but my advice is that if you do not know why you would need other partitions and what size they should be you do not need them.
So long as you have resized your XP partition to a reasonable size and pay attention to the Linux installation you should be fine. If you have any doubts write down what you see and investigate further.

What do you already know about "boot loaders"?

I did what you suggested, deleted the partition I made but I still get the same message. I have 200GB allocated for XP and the rest (40GB) free space, un allocated,,unpartitioned, just sitting there. When it get to the "Installation Settings" screen it says under partitions,
"Create swap partition /dev/sda1 (1.0GB)"
"Create root partition /dev/sda2 (231.8GB) <-- thats the whole HD
Does that mean if I were to go ahead it would reformat and partion the whole drive for Linux, thereby wiping out XP? Also I didnt see any option for installing in free space or another drive or anything like that, it seems to just be deciding these things on its own.

Yes.
If I recall SUSE installation correctly you should be able to click or select to change the partition settings and configure them as you wish from the screen you refer to.

It just seems to me that YAST isnt that well written to the point it can make the options clear and/or properly identify the partitioning on a windows based HD, then make the installations options available to the user. Once I figure this out I will post the answer as I see similar questions to mine asked constantly.

From the SUSE 10.3 installation DVD;

Choose Installation.

At the Install Menu;
Choose your language.
Check media if needed.
Accept License.
Choose New Installation.
Select Time Zone.
Select Desktop.

At the Installation Settings screen click the Expert tab.
Click on Partitioning.
At the Suggested Partitioning screen look at the second box and select Create Custom Partition Setup.

At the Expert Partition screen you can create, delete, or edit partitions. Use edit to select partition type and mount points.
The first time I clicked on edit a message appeared that said I could not use an existing partition. Clicking edit again brought up the edit menu.