There is a port of the Linux ext2 filesystem to Windows; however, I don't know if that port includes a port of the mke2fs utility, which is used to create a filesystem ("format a disk," in Windows parlance). Even if it does, though, I don't think it would be wise to go down that path....
There are some types of partitions that hold other filesystems or partitions. Coffeecat has mentioned one: Extended partitions hold logical partitions. These are understood by both Linux and Windows. There are others, though, with less universal support. Linux has its own variety of logical volume management (LVM), for instance, in which filesystems are named and managed like files rather than the much less flexible partitions on which filesystems normally reside. An LVM can fill an entire disk, but more often its placed inside a partition. Windows has something similar, known as "volume sets," although I don't know much about it. My suspicion is that your Windows D: and E: drives are actually volumes in the Windows volume set scheme. To verify this, try typing "sudo fdisk -l" from a Linux command prompt. This will produce a list of the partitions as seen from Linux, including their type codes, as in:
Note the "Id" column. Normal Windows NTFS partitions have a code of "7" in this column. Windows volume sets have numbers of 86 or 87, if the list provided by fdisk is to be believed. If that's what you see, then my hypothesis is almost certainly correct.
sudo fdisk -l
Disk /dev/sda: 320.1 GB, 320072933376 bytes
255 heads, 63 sectors/track, 38913 cylinders
Units = cylinders of 16065 * 512 = 8225280 bytes
Disk identifier: 0x00022117
Device Boot Start End Blocks Id System
/dev/sda1 * 1 12 96358+ 83 Linux
/dev/sda2 64 38913 312062625 8e Linux LVM
/dev/sda3 13 63 409657+ 82 Linux swap / Solaris
Partition table entries are not in disk order
If I'm right, then my advice would be the same as what coffeecat suggested: Back up D: in Windows, delete /dev/sda4 in Linux, create a new extended partition in its place, create new NTFS and Linux logical partitions in the extended partition, restore D: to the new NTFS partition, and install Linux in its new partition(s). There may be a simpler way using Windows utilities that enable manipulation of its volume sets, though. Part of the problem is the 4-partition limit of the Master Boot Record (MBR) partitioning scheme that underlies all of this; since you've already got four primary partitions devoted to Windows, you must delete one of these or convert it to a logical partition inside an extended partition in order to gain the ability to create enough logical partitions for a Linux installation.
An alternative is to just buy a new hard disk and install Linux to it, leaving your current hard disk untouched. Even scavenging an old 40-80GB hard disk would give you roughly as much space as you were planning to devote to Linux on your current disk.