During installation, you will be asked where to install linux.
You may identify the right partition by size.
Another possibility is to change to a console (<Ctrl>-<Alt>-<F2>), login as root, and call 'fdisk'.
You can change the partition-type to linux (83), but it will be better to create a swap-partition for linux (82) too.
So delete the you volume E: (which might be hda2 or something similar - watch for the size) and create 2 new partitions.
Take 1,5 times the size of RAM for swap.
Later create the filesystems (mkfs.reiserfs/ mkfs.ext3).
ext3 and reiserfs are the most popular filesystems today.
You can't use NTFS for a lot of reasons:
a) Write-support is not stable.
aa) Even if, it has to be build into the kernel to allow booting - but most kernels will provide ntfs-support as modul.
b) NTFS doesn't know symbolic links, but linux will need the ability to create symbolic links on the harddrive.
c) User/group/other - read-write-execute - permissions (plus sticky bit and other funky stuff performed on the filesystem) isn't available on ntfs.
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