Use GParted!!! It is a LiveCD that you dont have to use the Windows CD with!! No offense i mean this is the nicest way possible. For someone who says they knwo XP and have a lot of computer knowledge. You dont really seem to know much about how to install a Operating System.
The GParted Live CD can be downloaded here:
Mirrors
Burn that to a CD. Boot with that in the drive. The application isnt that hard to figure out. Just clikc the drive and you we see the option light up on what to do. From there just right click and choose the format option and select the NTFS file system.