WOW dragging it to the Ram drive worked!! OMG!!
No I need to patition the drive 2 parts, do I do a low level format first?
1. Boot
2. Games
any guides on that please

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Boot or better called Workbench, between 500MB and 1GB is more than enough, use the remaining space for Games.
Couple of pointers on when starting with Winuae:
- Always use a HDF file to start with, not ADF floppies!
- You can also make a copy of the HDF from like Classic WB, then format it within WinUAE and then setup a normal 3.1 installation using F12 and inserting adf's in DF0
- The best config is 030/040 setup with 2MB chip / 128MB 32BitChip / 512MB Z3Fast
- Speed; not standard A1200, use custom and type 90