This is not how to format the drive. If you boot the XP CD, all the tools are there to remove the partition, create a new one and XP's installer will format it for you.

With all due respect, you are working much too hard at this.

Here's an example install and you can see the screens ahead of time -> http://www.blackviper.com/Articles/OS/InstallXPPro/installxppro1.htm