Taking space away from XP: Disk defragmentation question

I want to take space away from Xp to dual boot with win 7. For this I have to repartition the HDD. I defragged the HDD inside XP, and now the disk defragmenter program shows my C: drive as
xxxxxxx++++xxx++++++xxx++++++xxxx+++++++++xx
where + is free space (white) and x is contiguous files (blue).
The report says I have 0% free space fragmentation, but isnt the picture showing otherwise ? Is there any way to get a disk picture of
xxxxxxxxxxxxxxxxxxxxxxxx so that I can safely repartition the drive ?

 

Just shrink and then create the new partition. Then you can install 7 onto the new partition and have XP as a backup.

 

Yes, but if I shrink wont I lose data as the data is laid out as
xxxxxxx++++xxx++++++xxx++++++xxxx+++++++++xx ?
That is, If I have a 200GB with 40GB used space, doesnt the above picture indicate that there is data at "point" 100GB ?

 

Run mydefrag and choose the disk consolidation option first. You may still have some issues depending on where the pagefile, the metadata and the hibernation file is...but start there first.