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yeh my friend had that problem the only solution we found was to put the install disk in and choose repair disk, repair permissions, verify disk and that worked for him and another friend it happened to we only got it to work by reformanting it as mac os journaled
you're running the older tiger of OSXtiger can be complain-ey, and often will not allow resizing of the boot drive, while leopard will (at any time too, even in disk utility)
Can anyone tell me the option key? Im guessing its CMD? but im not certain.