HALO9X,
Create the Windows partition using the Boot Camp software. If you can afford it, split the hard disk in to halves. This will give Windows enough room to roam free. Do not go with the Boot Camp standard.
After you finish creating the partition, quit the Boot Camp and insert your Windows CD. Make sure that if you use Windows XP it has to be patched with SP2. If you have Windows Vista you will be fine.
Reboot your system and press the "Option" key to select between the hard disk and the CD. The CD will show as "Windows." Click on it and let the system boot into the installation program.
When you reach the point on the installation where you get to choose where you want to install Windows, choose the partition that's laveled "FAT32."
Do not delete the partition and re-create it. When you are given the choice to format the partition into NTFS, do it. It is very important that you format your partition as NTFS otherwise the Mac will not boot successfully into Windows. Typically you want you Windows XP and Vista to run on NTFS to maximize the hard drive.
After you do all that you Windows will start copying all the installation files. This part is different in Windows XP and Vista but the bottom line is that all installation files are being copied into the hard disk.
Once that is done, the computer will reboot. Just make sure that you press the "Option" key again. At this point you will see three icons: the Macintosh hard disk, the Windows hard disk, and the Windows CD. Choose the Windows hard disk and you should be on your way. With Windows XP, you will continue configuring your brand new installation. With Windows Vista, you will enter your user information, some fine tuning and you will on your way.
On the Mac side you can use either Parallels or VMWare Fusion. I personally use VMWare Fusion. Both will allow you to point at your Boot Camp partition and boot it up within the MacOS X environment.
I hope this helps you. This is how I've done it on both Windows XP and Windows Vista. Personally I prefer to use, hence I rencommend, business (or Professional) versions of Windows but I'll leave that choice to you. Let us know how it goes!
Martin