Where to install Windows 7 Beta

I download now Windows7 to try it and I need your advice for installation in dual boot or multi-boot with my Windows XP Pro.
First question: Can I install the boot on the CD?
Second question: On installation will it format the partition?
Here are my hard drives:
1 "" "" Sata 80Gb "" "" 2 partitions "" "C 30Gb with XP Pro" "" "E 50Gb Installation (software) 40Gb free.

2 "" "" Sata 80Gb "" "" 1 partition "" "D full 95%" "" So we forget.

3 "" "" Sata 250G"" "1 partition" "" F 60Gb free "" "I could create a partition for for Windows 7, and if I do that going to rename all my partitions?
This is where I need your advice.
If I partition the drive, with which software?

Why not transfer the files on the disc # 2 on the remaining disks
Windows 7 and install on the disk. multi boot, when you installed Windows 7, you unplug other discs to keep only one on which you will install
Windows 7.

Yes Windows 7 will format the disk during the installation it is you who decides.

I'll see if I have enough room to transfer my data.
Another question: For example if I have a hard drive partitions 2;
C for XP and the other D.
Can I install Windows 7 on D.

Not advisable, since Windows 7 will create the dual boot and if you must
uninstall it may corrupt your Xp.

I install the boot CD or do I install Windows if it is done.