Early in the install process, you need to select which partition will be root, I know you get that message when you skip that step.
I just installed RedHat on a system, and 10gigs is more than enough! I created a logical partition, and left 16 gigs unused for Linux, then ran the RedHat installation. I selected the manual partitioning option and partitioned the space for Linux during the install. I also didn't use the Linux boot manager, choosing to use BootMagic instead. To use an alternative boot manager, you have to install LILO or GRUB on the Partition Boot Record, not the Master Boot Record.