Here is the Redhat installation guide for version 9
Unlike windows linux uses more then one partition. The default Redhat creates three.
/ (root partition, /boot and a swap. You can get away with one partition i.e. no swap partition (similar to windows virtual memory) if you have lots of RAM (like >=512 but it really depends on the apps you run) but I suggest creating one anyway.
You really want to use a native linux filesystem and not FAT32. If you select the custom installation method then you have complete control over how the drive is partitioned and what gets installed. Anytime you mess with repartitioning the drive it is possible to corrupt existing data.
If you delete the c: drive you can create 3 primary partitions to use as a /boot /swap and / partition. Make the first your /boot and size it for 100mb. The 2nd your swap of 512mb. The 3rd will be / and it will fill up the remaining free space. Its not difficult to partition the drive but if your not familar with the procedure it is easy to make a mistake.
BTW verson 9 is no longer being maintained by Redhat. You might have problems installing and running if you hardware is fairly new. What are your hardware specs?