Windows Disk Management
As mentioned above, Windows Vista and Windows 7 are equipped with a Disk Management tool. With this tool you can partition your hard drive, shrink or expand volumes, and create new ones. I will walk you through the process as seen on Windows 7.
To launch the Disk Management tool go to > Start and type > partition in the search box. From the results click > Create and format hard disk partitions.
You will now see a list of volumes and their properties. They can refer to several hard drives or partitions on a single hard drive. Below is a screenshot of what my single hard drive setup looks like.