1. /dev/loop0 is a virtual partition - don't make any changes to it.
Originally Posted by jonnystatts
2. The script doesn't require logical partitions to migrate to. But in your specific case you have used 3 primary partitions so if you want to create more than one (you get max 4 primary partitions), you need to first create an extended partition in that free space and then the logicals.
You can use GParted. It's available on the Ubuntu CD (live environment) or from Wubi you can install it: from software centre enter gparted in the search box and select "Gnome partition editor" or from command line:
GParted will show that "free space" as unallocated. You can create an extended partition in that space (/dev/sda3). Then you can create logical partitions within that.
sudo apt-get install gparted
Unfortunately the script does not permit you to migrate your /home to a separate partition. This feature might be available in the future, but you could do this manually after the migration.
If you have any other questions - fire away. I'm going to be out most of the day... but I'll answer when I can.