Eddie Haskell

Last week my hard drive failed and I replaced it with a new WD 160GB HD and now I want to partition it so I can use the whole HD since it only sees 127 gig available. I have 2 HD's installed, the new one (C: drive), and a 40GB, the 40GB is partitioned with a small allocation for system restore (D: drive and E: drive (SR), this was the original C: drive). The problem I'm having is that when I run Partition Magic I get an "error 100, partition table is bad", I assume my motherboard can't recognize 4 drives. My MOBO is an oldie but a goodie, Gigabyte 7ZX with an AMD 1.2 Thunderbird (top of the line when it was new).
My question I guess is; what would be the best way to go about re-partitioning everything so I can utilize all the space and still have an allocation set aside for system restore, or do I not have to have that set aside seperately on it's own "drive"? Thanks for you help