You have a lot of questions. I think you can Google the simpler ones... Or read my blogs:
Windows 7 Forums - tblount
..but I can tell you that windows 7 has a feature under \"properties\" when you click on a program that will allow you to run the program (you clicked on) in Compatibality modes all the way back to Windows 95.
I don't think there are partition tools available from the Install menu. You just have format and a couple other utilities.
I would just get another hard drive and install Win 7 .. then use a USB to SATA adapter cable (about $5) to access the old vista drive from a usb port. There is a BIG disadvantage when fiddling around with partitions.. you can EASILY lose all your data. If we don't see you around in a few weeks we'll have a good idea what happened.