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Unless you intend to dual-boot with Win9x, then go with NTFS.
Go into the BIOS and set the boot sequence to boot from CD first, then you will be able to boot from the XP CD and use it to partition and format your HD.
Partitioning depends on the individual. Just some ideas:
C: - Swap (Page) File 500mb-1Gb depending whether you limit the size or let Windows handle it. It also depends how much memory you have. Do a Google search and read the differing opinions about this.
D: 6Gb - XP - this will give you a good safety margin for updates and service packs in the future.
E: Programs
D: Data backup
The size of E: and D: depends on how many programs and what sort of data you are backing up. 50%/50% might be good here.
However, if you are downloading and saving music and video files, you may want to make it something like 30%/70%.
HTH
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