Hi,
For starters make sure you do all the reboots and checks like class413 stated. Windows is quirky, (ask those guys on the space station, lol)
Next lets verify what you have done. You have a hdd prepartitioned with WIndows with a 16 gb and 60gb slice. You need more room in the 16gb section. How did that occur, a suggestion would be to save all your documents and so on in the 80gb slice and use the 16gb slice for a base, root like if you get my drift.
As far as I know, WIndows does not directly link when you move from one partition to the other. It will still work fine, but the applications on the 16gb slice aren't necessarily seeing the applications on the new 80gb slice as being there, they are probably seeing links that access the new slice. In other words you don't really have an 80gb slice, it is less than that. How much less, I don't know; ask a Windows guy...but gparted is probablyl seeing the real slice on the bottom and the slice Windows is claiming to have on the top.
Please take note: I am not a windows expert but I have seen similar issues when divying up windows slices. XP home is notorious for having various issues; you might consider XP Pro. ALSO keep in mind two more things; many OS's leave the first 8mbs free for the MBR. There could also be block issues on the hdd's, hardly ever is an 80gb really 80gb. More often than not and 80gb is probably 78gb or so.
There may be other ways to resolve this, but here is what I would do. I would burn copies of all my data upon the 60gb slice, then do a complete reinstall. Make that 16gb slice for holding the OS and applications only, no saving of any data on there. MAKE sure you keep about 25% loose space on the Windows slice. Next I would create hdd 2 or whatever, on the open 80gb slice...now Windows will link to it directly.
Really, that 16gb slice...if you were running out of room, should be bumped up to 20gb. Link it to your 80gb hdd and save the remaining 60gb of so on the master hdd for something like Solaris Express. But its up to you.
Hope this helps some, I usually find that hardly any one response has the correct answer for my issue but rather harvesting the answers from several post usually gets the job done. Good luck.
Chooch