It is telling you that you can shrink the partition a maximum of 34 gig. You
can not free up any more space than this. The partition can be resized down
to where the utility bumps into the first unmovable "system" file on the
system partition.
To shrink the partition further you have to use a 3rd party application
(Acronis Disk Director Suite 10.0 build 2160 works fine) and perform the
partition manipulations after booting up the computer using the emergency
repair CD that the program allows you to create. When you boot as such, you
are not constrained by locked files and such. The Vista operating is not
running - therefore no files are locked. They all can be moved when you
shrink the partition.
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Regards,
Richard Urban MVP
Microsoft Windows Shell/User