'How do I install the programmes onto this disc from a CD when my master drive controls the system?'......load a programme normally and you will be asked which directory you wish to palce it in....choose the 8oGb drive. You will notice no difference in running them from this drive.
'Do I need to partition this slave'...modern computers do not need partitions, there is no point.
'How can I load another operating system from this drive at startup'...if the OS is XP it is easy to do...what is your main OS?