bjornl :
Speed does not decrease with how full it is.
bjornl :
A parition does not speed up or slow down anything.
Actually, that's not entirely true. The sectors near the very start of a disk will be significantly faster than those near the very end of the disk. Up to almost twice as fast in terms of sequential speeds. One thing partitions can do is ensure that all the files in that partition will remain within a certain area of the disk. So you might dedicate a 64GB partition to the OS and applications at the very start of the disk, for example, to ensure that all operating system files remain within the fastest part of the drive, have a second larger partition for games in the middle, and maybe dedicate a partition near the end of the disk to bulk storage, where performance won't be as important. Another thing this will do is reduce the movement of the read-write head, since all the operating system files will be closer together, resulting in faster access times when the disk is jumping between them.
In this case though, the 320GB 5400RPM drive is going to be a fair amount slower than the modern 7200RPM disk. So, using some partition management software to add an OS partition to the start of the newer disk, and installing the operating system there could potentially help performance. On the other hand, since everything will be on the same drive, the drive's head may need to jump back and forth between partitions when loading up a game, for example, possibly increasing some access times compared to the current setup where each partition is on its own drive and has its own read write head. Also, moving files between two partitions on the same drive will tend to be slower, since the head needs to jump back and forth between the read and write locations.
I fully agree on the suggestion for an SSD though, if you can afford to add one to the system. Even if it's a lower-capacity SSD for just the OS, applications, and maybe a few of your most-played games, it should perform a lot better than any mechanical drive.