If you install the latest release of RH (7.3), then you should be all set. The partitioning software will load up, ask you which partition you'd like to choose, and whether or not you would like it to format it to ext2 for you.
As for dual booting, that is done through either GRUB or LILO. It will ask you which mechanism you prefer, and offer to that that up as well. If, for some reason, it is configured so that only Linux is booted via LILO, there is a very easy way to touch up the lilo.conf in order to boot to Windows (or any other OS on the computer).
If you have any specific problems after installation, just post them in this thread.
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Sahil <sahil@despammed.com>