i use gparted to partition
i think that you should first shrink your hda5 partition to allow a small swap partition (about the size of system memory)
then use that space to make the swap partion (format as swap)
also format the hda5 as reiserfs (Not reiser4)
this is assuming that you are going to use one (hda5) of the partitions for SL3.2
next (i reboot --bad windows habit) update the installer...
run install to disk...
use manually partition disk
pick the swap partition ... format it as swap
pick hda5 format it as reiserfs ..also choose the mount point as "/"
click next... it should show you what you are about to do! if all is well gO for iT!