Red Hat 9.0 possibly comes with its own partition manager. I know that Mandrake 9.0 does since I use Mandrake 9.0. If so, I would use it and forget about Partition Magic altogether.
Regarding all of your other questions, instead of Wine, how about Win4Lin? Win4Lin will allow you to run the entire Windows 95, Windows 98 or Windows ME operating system under Linux as if it were a Linux application. You then install your Windows programs under the Windows you installed under Linux.
I have never tried the programs that you have mentioned above, since I don't use any of them. However, I suspect that most if not all of them will work, considering that I have made the following work: Microsoft Word 2000; Chessmaster 5000; Windows Media Player; Computer Associates Antivirus 6.X; Internet Explorer 5.5 SP1; and many others. Win4Lin even supports MSDOS mode and DirectX 8. The only things that I have seen not work are: Drivespace, which you won't need since Win4Lin provides a much better alternative; the old MSDOS VGA graphics mode games and the old DOS protected mode programs.
Win4Lin does simulate a very generic and somewhat limited "computer" that Windows then "installs" on, so anything hardware that wants to communicate with Windows through anything other than COM1, COM2 or the LPT ports won't be to. Consequently, things like CD writer software won't work. However, typically, Linux has replacements for that kind of stuff. I don't know how that would affect Kazaa, if at all? The upside of this is that Win4Lin's generic computer simulation actually creates a more stable installed Windows. This would no doubt include the very rickety Windows ME.
The overall situation is this: whatever you wanted to do with Wine, you have a much better chance of succeeding with Win4Lin. Unfortunately, Win4Lin costs and is not GPL. For details on how to get Win4Lin, go to
http://www.netraverse.com
Considering that I was able to make Win4Lin work, it is probably something that you would want to test to see if it could be made to work for you. If it does, then I would put everything under the Linux partition and get rid of the Windows FAT32 partition altogether. Given your situation, you would need to make a backup of your Windows partition and then convert your entire hard drive to Linux. Alternatively, you might considering getting another larger hard drive since it seems that your hard drive is becoming rather cramped. Linux doesn't have Windows' limitations on how large hard drives can be!