So say you have a fresh hard drive
 

You just need to put the CD in, correct?

None of those DOS commands to erase the previous installment because obviously there are no previous installments?

Is there any steps to take to insure that the drive will run at maximum potential?

Usually the CD that comes with it has step by step instructions on how to get it up and running but basically all you have to do is format. Depending on if you're using it as a OS HDD or just extra storage.

Quite simple really. Just put the CD in and you should be safe. Be sure that you are running Windows Service Pack 1. If you don't, get it from windowsupdate.com and you will be fine.

The HDD will read that it is about 10 gigs lower then what it says (160 would read about 150) but that is normal.