Partition Help

I just purchased a copy of windows seven to run on my Macbook and the bootcamp helper informed me I need to back up my hard drive first! not only do i not want to, I do not have the capability to do so, as I have no other discs and not enough memory on my hard drive for a backup. What do I do?

Specifically what it says is that "some files cannot be moved." What does that mean?

It means there is not enough "free space that is contiguous" in order to create a partition for Windows. In other words your drive is fragmented. Two ways to rectify that problem:

1. Use Time Machine to backup everything to an external hard drive. Reinstall, restore from backup.

2. Buy iDefrag and use it to defragment the hard drive.