How do I install LION and partition SL 10.6.8 run on same imac?

Hello If one could tell me step by step instructions:
I would like to install LION ( because icloud), but can I install LION and partition the OS so that my imac can run both SL 10.6.8 and LION?
SL 10.6.8 still runs some applications that LION will never be able to run.
So I really need LION installed,but also have SL 10.6.8 partitioned so I can run imovie HD6 with plug ins with SL 10.6.8.
Please if this can be done so I can run Lion and SL 10.6.8 on same computer
thank you so much in advance
please advise
scott

Wow, thank you Niel. I have looked on this site and have found many different ways listed on partitioning and using 2 OS on a computer. But there steps seemed very long and tedious- but of course if that is what is needed then i would do it that way. Again i was seeing a lot of different ways. But yours seemed direct.
I went thru the steps up until using the thumb drive for LION to install. I went in to disk utilities, i selected mydrive, clicked on the partition tab, and then i saw i had 96.7 GB available--without changing SL10.6.8 HD size.
it looks like you can drag and increase/decrease the partitions with the mouse control.
I really need LION for icloud, and if so all other applications EXCEPT imovieHD6
So i need to run SL for imovieHD6 the other applications like word, adobe creative suite, excel, etc ican use LION.
do you recommend having the partitions equal in GB?
I have a 250gb hard drive
should I split the partitions evenly between the two OS?
or should one OS get more GB than another?

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