Very easy...
Set BIOS to boot from the CD drive the XP CD is in/will be in, insert the CD, boot the system...
Eventually you will come to a screen that says XP is already installed on your system, and you'll be asked if you want to install another instance of XP. There'll be a few options there, choose to format your HDD.
Then you can begin the long and boring process of installing XP. After that, you can begin the even longer and more boring process of installing service packs and updates.
Finally, after multiple reboots, you can start setting everything back to where it was before.
As for partitions, that's basically dividing your HDD into different areas, you can have a separate area to run another OS, or just for storage, or whatever. Personally, unless you are running two operating systems, I see no reason to partition your HDD.
Others may disagree, but that's what makes life interesting.

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The lightning flashes through my skull; mine eyeballs ache and ache; my whole beaten brain seems as beheaded, and rolling on some stunning ground.
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