Partitioning before installing Parallels

I just purchased a Macbook Pro and need to install Windows XP to run AutoCAD & 3d Studio Max.
Do i need to partition my hard drive before i install Parallels 3.0?
Do i need to purchase partitioning sofware (ie ipartition) or is there a prompt when i install Windows?
I'm totally new to this, and a little confused, thanks for your help.

I think you're confusing Parallels with Boot Camp. The former is virtualization software that lets you run Windows side-by-side with OS X. The latter is what lets you run Windows separately from OS X, and is what requires partitioning.

Since you want to run resource intensive applications, you should stick with the Boot Camp method as Parallels can limit performance. Go to Apple's site and download Boot Camp. Install it and run through the Boot Camp Assistant. It will partition the drive and create a driver disc for you.