yup I agree. Unless it is a slave drive and you already have an OS on the master then you can simply right click on the slave drive in My Computer and choose FORMAT.
You cannot use format c: for NTFS paritions. (XP is mostly installed on an NTFS partition).
You can use FDISK to delete the NTFS partition, then create a new FAT32 with the floppy, or create a new NTFS partition with the CD, though.