First of all, please don't post in all capitals - it's the equivalent of shouting.
Unless you are using a virtual machine inside Windows 7, Sabayon needs to be installed on it's own partition. It's best to shrink the Windows partition using Windows itself and then run the Sabayon DVD and select install on disc.
Self-righteousness is a loud din raised to drown
the voice of guilt within us - Eric Hoffer