My C drive has 100 GB space 50% of which is used. I have four different drives. (One physical HDD worth 1TB). Can I shrink A drive which is 263 GB and take out 30 GB space from it for /home and swap? Or do I have to use the same drive where Windows is installed?
SnapOverflow
Yes. You can shrink that 263 GB volume by following this guide. Next you can increase the space of your /home and swap using this guide.
Linux can be install on any driver or any partition. This also includes usb Pen drives as well as other usb or extended drives that are recognized at boot.
The Linux install comes with a GUI that will walk you through the steps. When you boot the install disk it will give you default options, this includes installing along side Windows. Choosing that option will give you a graphic slider to decide how much to specify for the Linux installation and how much to leave for Windows.
By your question details you might already be aware of the default options. So you would choose the "Something Else" option of the install, and specify where you want Linux installed. In this option you can also specify the drive or partition for your /home folder.
Very specific to your question, you don't have to use the same drive where Windows is installed. You can pick any drive, any partition, irregardless of where Windows is install, or whether Windows is actually installed or not. When you use the something else option, the only parts of your drives or partition that will be touched by the install session will be the drives or partitions that you specify.