Both XP Home and XP Professional are based on the NT system. Therefore both can be
formatted to NTFS, or FAT32 if you prefer. Neither will format drives over 32 Gb
to FAT32.
It is preferable NOT to use fdisk when setting up XP. Just use the XP CD instead
with diskpart.
You can also use the Recovery Console loaded from the CD to use Diskpart and the
command:
>format c: /fs:ntfs