A clean install of XP using an XP installation CD will format the hard drive thus deleting everything. A fresh copy of XP will be installed.
Similarly, using a Recovery CD or partition, a “Destructive Restore” will format the drive and return the machine to factory settings.
A “Non Destructive Recovery” will recover XP, but the data on the hard drive is saved except for the My Documents folder
How to do an XP Clean Install
Valid for a full XP installation CD or an XP Upgrade CD
Configure your PC to boot from CD if it isn't already set up that way. You may need to enter the BIOS to configure the PC to boot from the CD.
Set the boot order to
Floppy (if present)
CDROM
Hard Disk
SAVE and EXIT
Reboot your PC with the XP Setup CD in the drive. When you see the "Press any key to boot from CD..." prompt, do so and let the CD-based boot process begin.
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Press F6 at this screen if you need to install any third-party or RAID drivers
Then copying files can take quite a while.

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Press ENTER here

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This is the Windows XP Licensing Agreement ( EULA).
Press F8 to accept to the agreement

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This screen is for users who are doing an Upgrade install. Replace your XP CD with the qualifying product CD and press Enter.
Users with a full XP installation disk will not be presented with this screen

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If you only have one hard disk, press C to create the install partition
If you have more than one hard disk, select the correct one for this installation

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Choose the size of the partition for XP.
You can partition the drive here by setting a smaller partition size for XP, thus creating another partition with the remaining space

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If you want to change this partition which you just created, highlight it using the up and down arrow keys and press D
If you happy with the partition, highlight it and press Enter

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This screen allows you to format the partition in either FAT or NTFS.
Select NTFS here.

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Another screen only for those using an Upgrade XP installation CD.
Remove the qualifying CD and replace your XP installation CD.

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The partition is formatted

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Installation files are copied to the hard drive

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Wait

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Setup will reboot
Do NOT press a key this time after the reboot.

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The last screen for this part of setup

The remainder of setup consists of entering
Regional and Language Options
Name
XP Product key. This can be found on a sticker on the computer case. It is on the bottom of laptops and is similar to this

The computer name and Administrator Password
Date and Time Settings
In Network Settings, select “Typical”
WORKGROUP can be left as default or you can choose a more personal name.
Setup will now continue automatically and XP will soon be installed
If you have any problems or need help please post your questions in Windows XP Support

