Confirmed.  I just installed on an 80GB HDD, before running the
installer I had 2 Primary partitions; 15 GB and 45 GB, both NTFS,
leaving an approx 20GB contiguous free space for Ubuntu.

I chose the use largest contiguous free space option, but the graphical
representation for after showed 100% useage for Ubuntu.  As I've always
used this type of setup when installing I just figured this was a
graphical bug in the updated installer and went through with it.
Getting to the end of the installer I could see it was going to create
the two new partitions in the free space without blatting anything, so
it seems this option works fine in theory, but just a bug with how it
displays it at the choosing partition step.

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ubiquity partitioner disk usage graph is incorrect
https://bugs.launchpad.net/bugs/295870
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