HD Install :: help with hd install

i run the dsl-hdinstall script and it says "A linux partiton of app. 200mb must be created prior to the following installation
Do you have already created such partition (y/..)? No partition created. The script will be terminated.

why does it do this, i have a partition that is already ext2 filesystem.

also how can i change my hda1 - 3 to be in /dev insted of /mnt?

original here.