... if so this should do an automatic format. I'm not an expert on this and no doubt someone else can give you more detailed info.
However, I did a reinstall recently without a problem. So far as I can remember, it first asks whether you want to format the disc as FAT 32 or NTFS. If you're installing XP, NTFS is the one to choose. Once you've done that it starts copying files to a temporary storage area.
One thing I didn't realsie is that at the end of the copying process, it restarts the computer. When that happens, do NOT choose install from CD-ROM - it just goes through the copying process again! If you ignore any message about booting from CD-ROM after the computer restarts it then goes on to the installation of Win XP which takes about 45 minutes!