Linux – the correct way to configure a Linux installation’s partition system

What is the correct way to configure a hard drive for a Linux installation and what do the various mount point options do EXACTLY?

Can someone please explain to me how the mount point thing works? I Understand that in a single partition setup the one partition must be set as the /… But what about a configuration where I want more than one partition? Will setting another partition's mount point to /home cause the /home directory to be completely moved to that partition thus no longer residing in the / directory? Or will the /home directory still be accessible from the root directory?

This all stems from my attempt at installing Ubuntu (as I type)… my goal was to have Ubuntu installed to a 100GB root, 5GB swap, and the rest as an empty personal directory. I set my partitions like so and received an error message (that I could apparently ignore) saying:

"No mount point is assigned for the ext4 file system in partition #6 of scsi1 (0,0,0)(sda)
If you do not go back in the partitioning menu and assign a mount point from there this partition will not be used at all."

Can someone help me out here? I could just go on with my thing, but I would prefer to not have to reinstall when I found out I did it wrong.

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EDIT: From what I am reading it sounds like the mount point of a directory effectively assigns all reading and writing with that directory to be done on the corresponding partition that you specify. i.e.: the partition mounted as "
/home" would contain nothing but the /home directory and would be referenced by the / directory. thus no files from the /home directory would actually exist in the partition mounted as /… am I correct?