Don't forget to backup your data before you re-format. By data, I mean anything important for which you longer have the cd to re-install.
Don't forget your outlook express data (mails and address book) - I did once and it was a real pain !! Use this link to help you:
http://support.microsoft.com/support/kb/articles/Q27 0/6/70.ASP
Also, don't forget to take a backup of any software that you have downloaded via the internet.
As far as upgrading to XP is concerned, try to establish why your PC has been slowing down. I mean, if your processor isn't up to the job, then I would strongly advise against upgrading to XP, bearing in mind that it is based on NT technology.
Good luck and let us know if you take the leap