But is there any need to shrink hard drive? I mean the space on drive c is 250 GB and only say 50 GB is used. So space is there as it is.

Fedora needs its own partitions with Linux specific file-systems (you can't install Linux on NTFS partitions). You can't install it to your existing Windows partition without deleting the complete Windows system. So shrinking the partition is a needed step, yes.

Thanks. So windows won't be deleted yes?

If you shrink it with the Windows partitioner and choose the "use free space on the disk" option during the installation of Fedora it will not be deleted. If everything works as intended, in any case backup important data first.

Thanks a lot sir

And thanks to all who replied to my questions

Will update this thread when I have successfully installed fedora or if I encounter some problem

PraveerD,
Check out this dual boot site: http://members.iinet.net.au/~herman546/
Yes, it is about dual booting Ubuntu and Windows; but the partitioning steps involved will be essentially the same no matter what Linux distro you want to dual boot with Windows.
If you check out the tutorials that are listed down the left side of that site you will find several detailed tutorials for dual booting Ubuntu + Windows 7.

You need to make at least 2 partitions for Fedora, a root and swap partition.
You will need to shrink your C partition in order to create free space for Linux partitions.

Using a Parted Magic live CD is a very easy way to resize and create new partitions: http://partedmagic.com/doku.php
Using Fedora's partition tool would work fine as well.

Hi, thanks for the link. Can you please add me over IM to help me or via tv can you please guide me?

Would be really grateful to you.

To make bootable USB we need to format it to NTFS?

A bootable usb can be made using most any file system as far as I know. See this site for making bootable usb Linux systems:
http://www.pendrivelinux.com/

Thank you

Using unetbootin it will format the drive for you.