I think that there is a confusion of terms here. What I think they may mean is a space which is not allocated to Windows.
Basically, use Partition Magic to take 2 GB from an existing Windows partition but do not format it or give it a drive letter. Presumably when you run Dell Media it will format it and then install the necessary files. It may require a particular format such as FAT or a linux format.
Sometimes these programs require that they reside on the first cylinders of the hard disk, so you may have to shuffle your C: drive up.
Make sure that you back up any data you care about.