Copy all the files across. As you state and rather than extend your linux partition reformat the partition to ext3 or whatever then install your virtal machine on that partition.
In general you should avoid big partiations.
I have
/
/boot
/home
/mount/data
/mount/windrivec
/mount/windrived
/mount/backup
@TheBrick(Tommy) started
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Copy all the files across. As you state and rather than extend your linux partition reformat the partition to ext3 or whatever then install your virtal machine on that partition.
In general you should avoid big partiations.
I have
/
/boot
/home
/mount/data
/mount/windrivec
/mount/windrived
/mount/backup