I've managed to run Partition Magic in Win2K with no probs whatsoever.
You have a rar? You should download the disk images (.ISO files) from the distro site and burn them onto CD using CD Recording Wizard (Google it), and when all the discs are burnt, put in disc one and reboot your machine, making sure you've set the CD drive to the top of the boot list in BIOS.
If you have disc 1 in, you'll get the install program for Linux. Then follow the instructions, installing it onto your Linux 2 or Linux 3 partition. PM should have made a swap partition for you, just don't install anything onto your NTFS/FAT32 partition.
If dualbooting with Win 98, put GRUB/LILO onto the MBR. If dualbooting with Win2K/XP, put it onto the /boot part of the Linux partition.