Help Formatting

I recently decided I wanted to format my hard drive and reinstall XP and everything from scratch. No problem right? Well I put in the disk and restart my computer, but I found myself unable to make a new partition to install Windows on. I cannot install it on the old partition because it just installs Windows without formatting (and there is no option to format the drive first) and I just ended up with a fresh copy of windows with all my old crap on the C drive still.

AAANYways. I get to the part where I can make new partitions and I am presented with the following options:

C: Partition1 [NTFS] 93950 MB (61061 MB free)
Unpartitioned Space 8MB

I cannot delete the partition because "This partition contains temporary setup files that are required to complete the installation." But I cannot create a new partition in the unpartitioned space because it is "reserved fir Windows XP partitioning information."

As you can probably tell from my post, I am a computer nub who knows how to play video games and use Word to write papers, and not much else, so simple instructions or a link to them would be awesome. Thanks in advance!

Zanbato