Partition Magic 4 is just fine as long as the Windows version in question is Windows 98, Windows 98SE, NT 4, or earlier. It's not suitable for systems running Windows 2000 or WinMe. PM 4 refuses to install if it detects W2K or WinMe. You can fool it and force it to install on a W2K system but it won't work. BUT, in your situation PM 4 is OK. In fact, PM 4 is what I use. One of my machines triple boots Windows 98SE, NT 4 Server and Linux. I use PowerQuest Boot Magic as my boot manager. Boot Magic can't be beat if your primary operating system is Windows 98. Get hold of it if can.

Chris is absolutely right that DiskDrake can do many of the things Partition Magic can -- many but not all. PM can not only prepare and manage partitions it can also deal effectively with screwups that can leave your hard drive un-bootable. If you have Mandrake Linux 8.0 on CD-ROM and your CD drive is configured as a boot device you might be able to restore an un-bootable drive, if you're clever. PM is a bit more fool proof. PM can create a set of floppies for you that can do emergency repairs for you. Just boot the first floppy and follow the menu.

personally, i only have experience with mandrake 8.0, red hat 7.0, and demolinux 2.0. Demolinux i like just because i can use it anywhere. red hat can be a little weird on the install. mandrake is a piece of cake to install. the built in partitioning utility (diskdrake) makes the repartitioning a snap. i recommend getting mandrake 8.0, if for nothing more than the ease of partitioning. if you've already shrunk your windows partition, that'll make the whole partitioning process take about 5 minutes, tops, once you figure out the intuitive controls for the utility.

i honestly haven't worked with partition magic, but think about it- it costs 50 bucks for a copy of partition magic. alternatively (i haven't tried this) staples has a copy of 'partition commander' (haven't used) packaged WITH a distro of TurboLinux (also haven't tried) for the same price. just a little additional info for ya.