If Windows XP was an 'Upgrade' install over an existing Windows 98, then you might be better to try a fresh, clean install of it first. Upgrade installs are the devil, and never work fully efficiently.
Windows XP on an NTFS partition is the best OS to use.
That said, if XP has used NTFS then you may need to delete the partition, and create a new one, using FDisk. then install.
Best way to install is probably from your Recovery CD, or whatever you get with that Dell. If you do a 'Clean' install, you need to ensure you load all the device drivers as well.
Catweazle
Grandad
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