No.
If the hard drive is empty you won't have a problem. When you get to the screen where you are asked if you wish to install Windows XP to the partition, follow instructions to remove the partition, and then follow the instructions to create a new partition in the unpartitioned space, using the NTFS file system.
(NTFS is much more efficient than the FAT32 file system used by Windows Me)
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Grandad
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since Mar 2004