The application's description in the market will tell you if it requires root access. It appears your phone is not rooted. You need to do that first, then consider partitioning your SD card.
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C:> is the CMD shell prompt under Windows.
$ is the linux shell prompt under ADB.
"su" is a linux command added to your phone by the superuser.apk application.
# prompt indicates your linux shell has superuser (su) permissions. You are probably rooted. You should be able to install a custom recovery.
But see my IMPORTANT reply in the Backflip forum first.