[CentOS] Vitualization and Partitioning

Hello,

OK, getting ready to order a new machine and had some questions about 6.0. It will have a single 500GB HD.

When I do the install, do I or should I setup a separate partition for guest OS's? From the redhat docs, it looks like the guest OS's reside at /var/lib/libvirt/images/. I may combine my windoze XP on the CentOS machine so would I need to create a partition and format that at installation? If I decide to wait and go with Windoze 7 can I still create the partition later?

I would like a partition scheme that allows for easier upgrades or installs without losing data.

Thanks, I'm more confused now that when I started reading about this stuf..

Eddie