Start Windows Setup from the WinXP CD. When it shows the disk partitions, delete them all, then
exit Windows Setup by hitting the F3 key twice. Now start Windows Setup again, partition and format as desired, there ya go.
The reason for exiting WinXP Setup that first time is just so that your BOOT.INI file doesn't have a record of the previous Windows intstallation and keep harassing you to choose between the two at boot-up.
