You could actually do it with a minimal amount of moving: reformat the /home partition to ntfs (if you use ntfs-3g, Linux can write to/read from ntfs). Before doing so, however, you need to copy or move any files on it to a safe location and temporarily move the /home directory to your / partition. If you have sufficient space on that / partition, you could do it in one go.
Shrinking a / partition tends to be tricky. I use XFS an I have found that Gparted can grow this type of filesystem but it can't shrink it. In other words, no shrinking without deleting... I'm afraid shrinking ext3 won't work either.
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