You simply cannot install Linux on NTFS or FAT32 partition. You need to re partition current disk. If hard disk size is 40GB and if C: 20G and D: 20G, you cannot install Linux until and unless
Backup D: and Format D: and install Linux on D:
Add new hard disk
Repartition Linux for ext3
All of these option can result in data loss so be careful.
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May the force with you!
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