if you use gnome in linux...try GParted. It doesn't require command line. Just install it ->select your internal disk-> unmount it-> set up 3 partitions (with the first being Fat, the next being anything, and the final being ext3) -> apply -> then format the partitions.-> apply changes.

You can mount the ext3 partition anywhere you want to. I used /mnt per the instructions on NITdroid homepage linked to in the first post.

Also, don't forget that you need to be root when you extract the files into the ext3 partition. Sudo didn't work for me. I had to Sudo su (which isn't usually recommended, but it wasn't really dangerous in this situation) and then extracted the files.