Well here is what happened... I restored my drive from a 160 gig external to an 88 gig partition and now the "Available" space is incorrect. The restore disk that came with my macbook will not allow for me to restore from an external drive, there is a glitch in disk utility. Because of this I made two partitions, 1 to install OS X, and 1 to restore to.... following me so far?
After installing OS X on one partition I used it to restore the image to the other partition. If it would have worked the way I had expected it I would just wipe the 1st partition and all would be well. It didnt work out that way.

I have 2 partitions...
60.41 is the 1st
88.20 is the partition I restored
(160 gig hard drive, 149 gigs formatted)
Both of them are bootable. Is there a utility I can run from the 1st partition to fix the restore? So far I have tried to verify both partitions and obviously the restore partition fails. Am I SOL or can this be repaired? (also thanks to proton in the IRC for helping me get this far)