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No, thats not it. At step 3 you are in Gparted. You haven't actually done any partitioning yet. This isn't a partitioning guide. Its a Guide to set up a virtual machine for using .iso images (bootable cd's) without burning to CD and having to reboot computers etc.
You then need to either use Lecter's Gparted video tutorial (in the "all about rooting" sticky thread) or my step by step that forms part of the "Root Memory" faq (also in the "all about rooting" sticky thread).

So after I've done all that & I've partitioned the SD card do I have to wipe the cache & do a full wipe as if I was flashing a new ROM for the 1st time?
That's hboot not recovery. Select "recovery"
Then once in recovery, go to "mounts and storage" and select "mount usb mass storage"