k I usually use a 98se boot disk to format with cause I like to get in there in dos and do it all manually but you can do it with the standard XP installation CD just as easily. The procedure is as follows:
Boot the computer with the XP CD (go into your bios as above and change the boot order to boot from the CD first) and allow setup to begin. When you come to the screen where you select the drive partition you should see the drive listed, If the drive was in use previously, you'll need to delete all the existing partitions. To do this you'll have to hit 'D' followed by the 'L'. The screen instructions will be visible to guide the process.
Once all the existing partitions are deleted the display will show the total unpartitioned disk space.
Hit the 'C' key to create a partition. If you only want one partition then hit enter and the entire disk space will be allocated to the C Drive, it will be a NTFS file system, assuming the drive is 32GB or larger.
Once the partition have been created, use the 'Up' arrow key to select the C drive partition to install XP on.
that should be it.