1) Logical or primary is your choice. You can either have four primary partitions, or you can have three primary partitions plus N logical ones (contained in a container partition called extended partition).
2) Just free up the space with Partition Magic and then create the partition while you're in Linux. mkreiserfs /dev/hda4 would create a ReiserFS filesystem on the last primary partition on your first IDE disk.
Håkan
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