Partitioning and formatting the hard drive can easily be done using the Windows XP CD. However, this is not the only way of performing the task. There are third party applications available that can do this for you. One in particular is Symantec Partition Magic. Again this relies upon a CD to perform its work. Another options is to go for an application called BootIt NG. Fitting on a single floppy disk the application can either be used directly from the floppy or loaded onto your hard drive. BootIt NG can be used to partition, image or as a boot manager.
The software is available from http://www.terabyteunlimited.com
Unfortunately this product is NOT freeware. At the time of writing the cost of the application was around $34.95.