I used the XP Installation screen to create the partition.
Let me start from when I had the old hard drive problem.
While that one was installed I had the
invalid boot diskette error (my first thread contains more info). I was able to boot using the XP CD to the installation screen. My first thought was to do a Repair Installation. When I got to that screen though, it had mentioned
"Setup cannot access this disk". Underneath that, it displayed the 2nd hard drive with the information,
Partition 1 158gb (110gb free) (with more specific numbers)
Now I am 100% sure
(I hope), that I did not delete the partition from this screen (i.e by pressing D). I then took out my old drive, and set this new drive as the master. I got to the install screen again, only this time it mentioned something like
Unallocated space 158gb. On that screen I pressed
C to create a new partition, and I entered 2000MB. It then copied files and restarted to finished with the installation.
2gb is small but I was planning to use the unpartitioned space of the drive to install applications.