OK. So, if you want to use your entire drive as one contiguous drive C:\, you have two choices:
1. Delete the FAT 16 partition, and start over by booting from a startup disk. You may be able to use the one you just made. Better yet, before you wipe everything out, make a VERY simple bootable floppy that contains the system, FDISK.EXE, FORMAT.COM, SYS.COM.
To make a bootable floppy, from the DOS prompt, type FORMAT A: /S (which should transfer system on the fly), or FORMAT A:, then, when it's finished formatting, type SYS A:. Then, copy the other files I listed to that floppy. This is a disk you can use to boot, FDISK your hard drive, and format it.
Boot to the floppy, and type FDISK <Enter>. When it comes up, you will get a message that your drive is larger than 20 GB, and you will be prompted whether you want to use the entire disk space. Choose, Yes. That will set up the disk as FAT 32. Then, you can format the entire disk as one drive.
2. To avoid having to re-install everything, get a copy of Partition Magic, which can convert your drive to FAT 32 and format the rest of it on the fly. That will save you a lot of time, but you'll need the program to do it.
jcmkk -- Yes, Windows does have the ability to covert a disk to FAT 32, but I have never used it, so I don't know if it will also allow you to re-size an existing partition.