Perhaps this will help.
The confusion arises as follows, and this is true for ALL partition managers.
From within windows, you can not perform complex operations ( moving data) on the partition you are currently booted into, or the System partition.
That is like trying to cut down the tree you are sitting in.
You can perform complex operations from within windows on the other partitions , and simple operations (e.g. shrinking free space) on the boot and system partitions.
You should get a message along the lines of "cannot perform the operation while you are booted into this partition".
Paragon message is a little unclear, perhaps, as it says something like : cannot perform this operation while booted into "the name of the o/s you are booted into".
Might mislead you to think it is not compatible with "the name of the o/s you are currently booted into". PM9 is fully compatible with Vista x64.
Some partition managers will then restart your pc and continue the operation in their own "boot time", or pre installation environment.
This should work perfectly UNLESS it is a long operation, and Vista power management kicks in because you have it set to turn off bits of hardware within that time. (Windows 7 power management - for the betas at least, seems to have a mind of it's own).
For complex operations, it is probably better to use the bootable disc - for ALL partition managers.
That is why they have the function to create the bootable disc.
Rive has provided
http://www.vistax64.com/tutorials/163304-dual-boot-using-free-partitioning-software.html.
Also, if the partitioning is slow - it is because you have asked it to move data. Could be several gb, including system files such as the MFT - obviously it takes a long time.
It has to be done carefully and in a way that complies with Vista's new partitioning rules - different from legacy systems such as XP. Shrinking free space is quick and easy of course.
Hope it helps.