I was just going to recommend restarting, since I didn't see it mentioned. I had the same problem about a year ago, trying to do the same thing.
If you want to erase the free space still, I'd try it from the OS X Install Disk, see if that works better.
jW
If you want to erase the free space still, I'd try it from the OS X Install Disk, see if that works better.
jW