Parted Magic (included in UBCD) has gparted as program. so you don't necessarily need Gparted Live.
Did you include the winvblock driver in the ISO?
http://www.boot-land.net/forums/index.p ... topic=8168
Without it, Windows can't find the memory mapped ISO.
Also add 'raw' (needed on some PCs for booting windows)
MENU LABEL W2k
APPEND iso raw
How big is the ISO? It must be a lot smaller than 512MB if you have only 512MB of RAM.
Download Ultimate Boot CD v5.0
Use Parted Magic
for handling all partitioning task: http://partedmagic.com/