Just to be clear. The Win7 OS is in the 120GB partition. The unallocated partition with 345GB is where I will be putting data/programs. Wouldn't the 120GB partition be the "Primary" as it would be booting up from the partition with the OS? I want to make sure I am doing this correctly and also understand what I am doing so I can do it again and teach others =).
You're right on the first part
A "Primary" partition is a type of partition, it have no impact on which partition is the first over the other one. As long as Windows is installed and runs from the C: partition, you have nothing to worry about. A "Primary" type partition is a partition where an OS (like Windows or a GNU/Linux distro) can be installed and booted from, that's it. Which means that on the new partition that we'll create, you could install Ubuntu and boot from that partition