Okay,
In Gparted there was an exclamation mark over /dev/sda2 and it wouldn't resize.
When I ran ntfsresize the first time it gave me a series of errors.
That was when I posted here.
I ran ntfsresize again and this time I got an error message which said "run chkdsk /f".
So I booted into Windows 7, agreed to the EULA and generally set up as Windows required me to do before it would proceed.
After that I ran chkdsk /f, restarted and booted with my livecd.
This time I WAS able to resize sda2, expand the logical partition and set up partitions prior to my linux installation.
Am currently installing!
Will report back on whether I can use Windows 7 as well.