sounds like a screw up on your part during the installation partition phase ...
anyways before we attempt the steps of rearranging everything, post the output of :
fdisk -l
you will have to be root to do this ....
but just for your knowledge you will have to have that free space allocated it, and change your fstab to point to the new /home and then re-mount it to its new location ..
but if you did in fact screw in the partitioning, then technically you shouldn't have free space and it should all be on / as 3.5GB ... and in that case you will have to either resize the partition , or like you said start over and re-install
