Let's try again.
This is the terminology I use:
Disk: a real object meant to hold data such as a hard drive.
Partition: an arrangement method of information on a disk, which defines the location of data and how much data can be held. Windows Explorer considers partitions to be drives, but that is technically incorrect and I will attempt to avoid that terminology. Instead I will refer to each partition by it's name (C:, D:, E:, ). they are also called volumes.
Data: information stored on a disk
unallocated space: part of a disk that is outside of a partition
Master Boot Record (MBR): data which explains where the partitions on a disk are located, and their size.
extend: make a partition bigger by using unallocated space to the right of the partition
shrink: make a partition smaller by creating unallocated space to the right of the partition
in this picture, each row that begins with Disk 0, Disk 1, CD ROM 0 represents a
Disk, or a physical drive. Each Blue block represents a
partition, which contain data. The striped block does not contain a partition, but one can be created in it. Except:
The MBR is used by the computer to locate required data. It can only explain up to four partitions, due to how it works. what you want to do is create a fifth partition in the unallocated space, which cannot be recognized by the system. However, if you put all of the files and data on D: and E: into one partition, then you would have three partitions, which allows you to create a fourth partition.
There are two ways to do this:
Theog wants you to
extend E: to use the unallocated space to it's right. Then he wants you to move all files and data from D: onto E: which frees up E: so you can empty it and install Windows 8 on it
The problem with doing that is that all of your files and data will be stored on a 180GB partiton that is over 80% full, and you run the risk of running out of space. also what irishHorsemand said.
What I want you to do is to make all of E:'s files and data onto D: which allows you to delete E:, which creates a lot of unallocated space. Then you can extend D: so it takes up most (but not all) of the unallocated space. then you can create a new partition in the remaining space, which you can then install Windows 8 to.
Here's the steps to do this:
1. Move all of E:'s files and data into D: This can be done by opening both D: and E: in Windows Explorer, the dragging the contents of E: into D: If an alert pops up saying that there are files or folders that have the same name, then you will have to create a new folder with a different name in D: to move those files and data into. If you get an error saying that the copy cannot be completed, tell us before following the next steps.
2. Once you are sure that the contents of E: is safely copied into D: then you can open disk management and delete E: (done by right-clicking the blue box that represents E: and select delete)
3. Then you can extend D: this is done by right clicking the blue box that represents D: and selecting extend. A wizard will pop up which will walk you through the process. click next. You will then get this window (but the numbers will be different, and higher)
4. subtract 60,000 from the number in the red box, and type the result into the blue box. then click next, then finish. D: will now be much bigger, and you will have no problems about space.
5. You may now go through the New Simple Volume Wizard again, but this time you shouldn't get an error.