Of course the auto-partitioning can't be done. Even though the
data in your Windows installation takes up only 30 out of the 60 GB on your computer, the Windows
partition takes up the full 60 GB. You need to resize that partition before you can do anything.
"Auto-partition" to Linux means that you have a totally blank (or soon-to-be-blank after reformat) hard drive that Linux can decide to partition with a part for the boot partition, one part for the home partition, possibly a linux swap partition, and a root partition. It'll divvy up the whole 60 GB.
Usually there's a second option, something like "Custom install using existing partitions." This means that you've already divvied up your hard drive, one part with Windows, one part blank or with another OS. This option presupposes you've already partitioned your hard drive.
Most up-to-date Linux distributions will include some kind of partitioning tool. I'm not sure about Red Hat 9.0. I know the latest Mandriva partitioning tool is great, and the latest Mepis partitioning tool is also pretty good. If you use either of these, you have two options:
1. You can use the tool to partition your drive, wholly wiping out what you have. Then, install Windows on one partition. Then, install Linux on the other. You would back up your data, of course, before doing this.
2. You can use the tool to resize your existing Windows partition and create a new one. If you do this, make sure you back up your data and defragment your hard drive first.
And, in terms of partitioning, you can do it however you want, but this is how I've set up my computer, and I recommend this type of scheme:
1. Windows XP (NTFS)
2. Windows generic FAT32 partition (Linux can write to FAT32 but not NTFS, which is XP's native format)
3. Root (/) partition for Linux (keeps just about everything except your personal settings)
4. Linux-swap partition (for extra memory... may be obsolete or unnecessary, depending on how much RAM you normally have)
5. Home (/home) partition for Linux (keeps your settings)
Why set it up this way? Well, you need the NTFS partition because Windows XP is designed for the NTFS file system format. The FAT32 partition is for data--music, documents, pictures, etc. The advantage of having this partition is that both XP and Linux can open and save files from it, and both OSes can recognize that it's there (you'll notice that Windows XP will not acknowledge your Linux partitions). The home partition should be separate because, especially if you're a Linux beginner, you shouldn't be afraid of reinstalling Linux and reinstalling a new distro to try it out. If you preserve the "home" part, all your settings and preferences will be kept safe during new installations.
Good luck!
By the way, why are you using Red Hat? Try
Mepis,
Ubuntu, or
Blag.