Sure, this is definiately doable. Use a program such as Partition Magic, fdisk, etc to set some room aside for Linux, and make at least two partitions for it. (When you run the Linux install, you'll set at least one of these to Linux native file system and the other to Swap.)
While windows uses a pagefile, linux uses a separate swap partition, which, by rule of thumb, should have a size that is twice the amount of ram you have in your machine.
Reserve at least 5 gigs for a linux installation. The most you'll ever really need is 10 gigs if your hard drive has the space and you plan on installing a lot of software or need storage room.
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