A big problem with using NTFS is from linux it will be READ ONLY
Especially from NTFS 5 (Win2k)
It wont be readable at all from Win98 (w/o extra additives & preservatives)
FAT unfortunately as much as I hate admitting it

is your best choice for your windows partitions.
etc2 is not readable by windows at all (drivers available??) not any version
So if you're going to share data you'll have to do it from the fat partitions.
from within linux you'll have folders for
/mnt/win_c
/mnt/win_d by default in mandrake
I've had the very setup you're speaking of for a long time
Only problem I have is getting the bootloaders to talk to each other ....
I have to go into the BIOS and change the boot order of my drives to get to linux

Keep meaning to post about that LOL
(2 physical drives, one for windos, and the other for linux)
However, I think on one drive it'd be a bit less complicated

Oh and you may read through in the installation about "over 32 cylinders and heads etc you may not be able to blahblahblah"
pretty much disregard it these days, the BIOS on any good mobo nowadays can read past those old timer limitations!