I'd have to disagree with Steven a little on his layout (don't take it personally Steven!):
Moving the swap (or page) file into a different partition will only really make a difference if that partition is on a separate physical drive. HD transfer speeds get slower as you move further into the...
What Steve said :)
If you're going to be reinstalling Windows onto the drive, you will need to make a Primary DOS Partion on the disk (should be the first partition you create). You'll also need to set this to ACTIVE. You can do all this via the FDISK menu.
If you only create one partition...