Yes, but backup anyways.
No, it should remain. But it could raise an installation problem relating to the Recovery HD.
It seems the issue is that the space at the "bottom" of your available space when Lion installs it's partition is already occupied by BootCamp. The fix was to go into Disk Utility; Select your Hard Drive; Select Partition; Move the bottom of your main partition "up" a bit to create a space for Lion; close Disk Utility; Install Lion; once Lion is successfully installed, go back into Disk Partition and drag the bottom of your main partition back "down" to the bottom of the window.
Again, backup your Windows volume as well.