I use the Partition Resizer in BootIT NG's boot manager. You don't need to install the boot manager just cancel all screens and go directly to Partition work.
This will run from a floppy diskette.
Just shrink the partition down to a reasonable size say 10240 MB (10 GB) and then re-boot.
Go to Disk Management and make an Extended partition using the full remaining drive-space and then create, up to, three Logical drives within the Extended partition and format them one at a time.
You can then move the My Documents and Email folders to a partition to give you sufficient free-space on the Primary partition (C).
You can also move the paging file to a partition and just leave a small paging file on the C: drive.
You should disconnect from the internet, remove your anti-virus program, and run chkdsk and defrag before booting to the diskette.
Not removing the anti-virus program can cause errors and failure.
TERABYTE