Acually your Windows XP Pro CD will do it all. Simply go to your Bios and set your boot to the Optical drive with the XP Pro CD to first boot device. Press enter when it says boot to CD and Windows will go through an install procedure and give you the option to do select the drive you want to install Windows on and then give you the option to do a quick or full format. You can even use it to make several partitions. Once that is done Windows will install on the formatted drive. Pretty simple just follow the prompts. Lots of other ways to format but without getting too involved this is one way. HTH.

BTW Full Format is better IMO but it takes a while.

Edit: If your Hard drive is larger than 130 Gb you will need to get a utility from your HD manufacturer to see the full drive as Windows only sees around 130 GB and will not format the whole drive.