Dual boot Windows 7 and Ubuntu 11.10

You can use GParted from the Ubuntu Live CD for partitioning. Resize available partitions if necessary and create new partitions as you want. You can also do partitioning in installation process.
I suggest you to specifying more size for / partition.
Don't worry about primary and logical partition. Ubuntu can be installed on any partition.
If you choose any partition as /boot partition, Grub will be install on it.
Bootloader of Ubuntu will be installed on MBR by default. Don't worry about Windows. Grub will detect it and will add it on boot menu.

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