My macintosh HDD 500GB has about 350GB data on it. I want to create a 100GB partition and leave mountain lion on that and then move my data to the other 400GB partition. However when I go to create the partition the smallest I seem to be able to make it is 350GB. I'm wondering is this limited because of the data on the disk already?

If so what approach do I take? Move everything onto an external HDD and then create a partition? Because when I moved everything off (but not empty trash) I still was limited to 350GB partition, its like the data was still there? Can anyone tell me if I move the data to an external drive and empty the trashcan will I get the ability to partition to a smaller size to just house OSX?