I have a very simple, yes or no question, hopefully. I have a logical partition inside of an extended partition, along with some free space in the extended partition. On server 2008 r2 if I drop the logical partition inside of the extended partition will I be able to also drop the extended partition and then create a new primary partition?
Yes, but you will lose all data in the old partitioning scheme*.
*: From a data-recovery perspective, at least at first, the data's still there, but it won't be accessible; it'd be like deleting a file.