Drive partition and relocating pagefile

I'm on a laptop with a 120GB hard disk. 100GB is allocated as my C: drive and I'm trying to shrink it, however Vista's in built shrink utility under Disk Management insists that I have 0 reclaimable bytes of data on my disk. In reality I have over 70 GB of completely unused space. I relocated all but 256MB of my pagefile to a separate 5GB basic drive partition, but according to the Disk Manager page file is not enabled on that drive (its only property is listed as 'Primary Partition'). Which leads me to two questions:

1. How can I get it to use the page file on that partition? Or do I even have to?
2. Why won't it let me shrink my partition and how can I get it to let me shrink some?

I figure there is some theoretical advantages to having the page file in it's own partion (lack of fragmentation). I have never noticed any real gains myself. If you have a page file setup, Windows is using it.