Alright i'm having a problem with this.
I put the Xp CD in, boot up to install, and create 2 paritions (one that is 7Gb... for Xp and one that is 3Gb for ME)
When i create the 2 Partitions it just says
Partition 1 [New (Raw)]
Partition 2 [New (Raw)]
When i hit enter on one of them, it takes me to the menu asking how i'd like to format that drive ntfs or fat (there is no fat32, btw). So do i install XP, then come back using the ME disk and format the 2nd partition as fat? because as soon as i select one of the two partitons on the xp install, it formats them, then goes directly to installing Xp, it doesn't ask for me to choose a format type for both of them (which is how i read what you were saying)
[Edit]
Ok so i set Partition 2 as a Fat32 System, and left Partition 1 as nothing and it's installing just fine now. i'll post again if i have anymore problems.
[Edit Again]
I have everything completely working now. Thanks a ton eric. What i ended up doing was putting the harddrive in another computer, booting up with the Xp Pro cd, and leaving 1 partition completely blank (the Raw or w/e). Then i restarted, and installed ME. After i got ME installed, i moved the harddrive back to the Ipaq. Then i copied the contents of the Xp Pro cd to a 1gb jumpdrive that i have. Then after about 50 restarts (from ME) i put the Xp Pro CD in the USB CD Drive and Plugged the Jumpdrive in and hit install. After i entered the serial #'s and stuff i walked away and apparently everything installed just fine. When i returned it set "Welcome To Your Windows XP W/e" and i added a username and password and it's working perfectly now. I can't thank you enough, eric.
Also, a big thanks to everyone else who posted with help and suggestions.