Will installing Linux wipe my restore partition?

"No, Ubuntu would not wipe out your partition unless you ask it to. But said that, it will change the MBR (unless you will tell it not to) and your fancy blue button that gets you into recovery mode would not work.

You can, however tell it to install GRUB loader into some other partition but this is rather advanced step so I'd recommend ask some local Ubuntu guru to do that. I've done it myself and I can tell you that's possible but I'm not sure I can explain procedure in necessary details.

Not so much detailed description is:

when you creating partition for Ubuntu, make sure you set ""Boot"" bit on it. IBM MBR will load first partition with bootable bit.
you have to find out how partition when you installed Ubuntu is named in GRUB terms. It should be something in the '(hd0, 0)' format.
on the last step of installing Ubuntu when it asks you if it is ok to install GRUB, open advanced settings and enter the location you found out in previous point.

That's it. In fact, if you're going to create swap partition, you can install GRUB there too, just make sure it is marked as ""Boot"" in cfdisk.

On the other hand, even if you install GRUB into MBR, it will find restore partition and will ask you if you want to load from it. I haven't tried it but I think it will be the same as with pressing a blue button.

DISCLAIMER: I followed this procedure couple of times but the last time was with Ubuntu 8.10 so I don't really know if it works with 9.04. I don't see a reason why it wouldn't though."

"If you want to retain Windows as a dual boot, it should be fine. Ubuntu will allow you to:

Use a free partition, or resize the windows partition
Not format the existing windows partition
install GRUB, which will provide you with a menu during boot time with the windows as well as ubuntu boot options

So, I do not foresee any problems. Have done this multiple times. Do recommend a backup, though !"