I'll try that, but I tried something different earlier. I put in an 80GB disk, it has one ext3 partition on it (80GB). I resized the filesystem (resize2fs), and I booted from a liveCD and trying parted, but it doesn't want to go.

#parted
(parted) resize 1 0 60G
No Implementation: This ext2 filesystem has a rather strange layout! Parted can't resize this (yet).

Then I  remove journaling to make it truly ext2;
tune2fs -O^has_journal /dev/hda1

#parted
(parted) resize 1 0 60G
No Implementation: This ext2 filesystem has a rather strange layout! Parted can't resize this (yet).

Just if you're wondering, I resized the filesystem to:
/dev/hda1   Used:38436MB  Available:1699MB  Use:96%

>From the resize2fs() manpage:
If you wish to shrink an ext2 partition, first use resize2fs to shrink the size of filesystem. Then you may use fdisk(8) to shrink the size of the partition. When shrinking the size of the partition, make sure you do not make it smaller than the new size of the ext2 filesystem!

I've looked into fdisk(8), but found no way of shrinking a partition. I might be able to delete it and start it at the same cylinder, but that sounds risky.