Hi,
I don't have XP anymore, but if possible, can you delete any and all volumes and partitions, not reformat. If not, see if you can find a friend with W7 or W8 and do the delete all volumes and partitions on that. I have done this several times and never had a problem with W7. If you get that far, just create a Simple Volume and reformat in whatever you want Fat32 or NTFS. Do you need Fat 32? Anyway, good luck.