Oh, and the install: put the Windoze CD in the drive, and boot the box, the install should start automagically.
If it doesn't, you need to set your BIOS to boot from the CD.
There's a bunch of how-to's out on the net, which can do a better job of describing the install than I can.
http://www.pcnineoneone.com/howto/clean1.htm
http://diveintomark.org/archives/2003/08/04/xp
If it were
me, I would upgrade to at least Win2K; I can't stand XP though. If you were closer I'd lend you my installation media.