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Why do i need to boot from another disk,
It is the way the software is designed. I suppose the theory is that it might be a little more safe, if the os won't eat itself.
I've done this before (some time ago I'm afraid) a format c
When booted from the C: drive?
hmm... It has been a while for me too, that may have been back as far as DOS 5.0. Even there, I'm not sure.
followed by an install from the product recovery CD worked a treat. But its all different this time (same computer & software)
Are you sure it is not possible that you were booted from that CD back then?
How do I do it - should I go into the BIOS & tell it to boot from another drive
Yes.
More accurately, you'll be telling it the order in which to attempt to boot.
Check out:
http://www.computerhope.com/issues/ch000217.htmand let us know if you need more than that.
(how do I identify the CD/DVD drive) What disc should I use.
I'm not familiar with the different nuances between a recovery CD and a full WinXP install CD. Somebody else will answer that for you.
I suspect that either will boot and allow you to format the hard drive.
But either way, you're going to need something, to be able to reinstall Windows after you format.
Have you got everything you need to reinstall?
Check out:
http://www.computerhope.com/issues/ch000647.htm