Can I partition with my live usb key?

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http://askubuntu.com – I have a live usb created from linuxliveusb. I have win 7 installed and have 60 gb of unallocated space. I would like to install my ubuntu (12.04) in a primary partition (since someone instructed me to install my linux in a primary partition, but need your views on this). I have only one primary partition and have win7 installed on it. Partitioning in native win 7 disk management only creates logical drive. So, I decided to use linux partitioning tool while installing. I have following questions which I need clarification 1) If I use install time advanced manual partitioning in a live usb in (HowTos)