Hello there! Perhaps I can guide you in the right direction...Its pretty easy if you follow a few basic steps..With a newer OS such as Windows XP I would even bother booting from a floppy and doing it the way the instructions said..now since you said you were able to boot from the CD already that is a good thing and one less step...Now I am assuming you want to start from scratch and there is no data on the hard drive you wish to save right? That way we can reformat the drive...
A few basic terms you should know...I will give you the basic run down not all the techy nerdy stuff
FORMAT= Means that you will erase all data from the hard drive and perpare it for installation of an OS.
PARTITION=Basically it is a way of organizing the hard drive or configuring multiple hard drives..To keep it easy I will use one drive in my example. Say you have a 60GB hard drive and you want all that space to be one drive letter C:\ then that would be 1 "partition". Now say you wanted to split the 60GB hard drive into 2 "partitions" you would half the drive so now you would have a C:\ and D:\ at each 30GB each...thats the basic idea..
Now do this to install it easiest:
1) Boot from the windows XP disc let it do its thing until it asks you questions...just keep choosing the options that will let you continue to install Windows XP as you will get asked do you want to "R" repair the current windows installation etc etc..
2) You will get to a point where you will see your current "partitions" which according to the info you provided would be C:\ & D:\. You want to delete these both by hitting the appropriate keys (It will tell you on the screen) it is usually "D" for delete then "enter" then "L" do this for all partiions you see listed there.
3) Now it should say Unpartioned space 60,000MB or whatever your hard drive is...click "C" and this will create a default C:\ partition.
4) Choose the newly created C:\ for the installation path.
5) Format using NTFS (FULL)
6) Follow the on screen instructions from there on out..
Its pretty basic after you get the install moving along.