[Palos]

Ok, it happened to me twice, had to reinstall Mandrake 8.2 twice...
I resized some Windows partition with PM7, formatted it in Ext3 from the Mandrake setup, all went ok. Problems arise when you reboot in Windows and try to run PM7 again, it will report LBA errors. DO NOT attempt to correct them, because the partition will become unusable for both Windows and Linux

I think it's because PM7 does not support Ext3 in the current release, only Ext2. The advantages of Ext3 (like ReiserFS) over Ext2 are evident, but that's another topic

Hope it helps.