Boot off XP media.
Delete any and all existing partitions.
Create new partitions as required (I prefer to only create one before installing the OS, even if I will have more than one partition on the disk - it prevents Windows from screwing up the installation).
Install XP and then all the drivers, then install SP2 (if not already slipstreamed), then all the updates, then all your applications, then configure it all the way you want it...
SD