no dont cancel it you may corrupt the drive. its strange that its not showing all of the drive though. are you sure its formatting the right drive right now can you verify that its spining and doing things right now. if it is i would still suggest preforming a low level format using power max.
that is strange. boot to the powermax disk now and preform the low level format. once that completes boot to the XP cd and create the partition and the cd will format it using NTFS.