if i was you, i would use Disk Utilities to do it, of course you will have to do it via boot-up disk, but once you have made an image of your currect OS X partition restored it to your new partition and installed Chameleon onto the new partition you are all set. this is how i have done it for almost a year now, works everytime for me

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iMac ::: Mac OS X 10.6.1 ::: Intel Core2Duo 2.93GHz ::: NVIDIA Geforce GT 120 256MB ::: 4GB DDR3 RAM

Milanca Project ::: Mac OS X 10.6.1 Retail ::: Vanilla Kernel ::: Intel Core2Quad Q6600 2.4GHz ::: NVIDIA GeForce 8600 GT 256MB ::: 4GB DDR2 RAM ::: GIGABYTE GA-EP35C-DS3R