You need a Win98 boot disk [not sure how XP boot disk works].
copy fdisk onto it, and delete the primary partition. [XP Home has NTFS yeah? If not you could just format with the win98 disk]
then pop in your XP CD, I presume like the 98CD it will create the partition and format... that's what I'd do for Win2K anyway which is what I have at work.
any comments, what_does_this_button_do?