You can directly boot from an XP CD, and there are options to format to NTFS or FAT32 in the XP installation program.
There is also a simpler method! Use GHOST to randomly create an image file from any software disk (choose a floppy disk because it's small and easy to make). Then copy GHOST and the image file to a floppy disk. Boot into DOS with the boot disk, then insert the GHOST disk and GHOST the image file to the C partition. It's quite fast, especially suitable for quickly formatting large hard drives. I tried it with a hard drive partition (FAT32) made into an image file. But the floppy disk might be FAT(16). If you don't need the current C partition anymore, you can give it a try. I don't know if it will be FAT32 or FAT16 after formatting. You can also find a small FAT32 formatted hard drive partition (with as few files as possible in the partition, so that it can be made quickly and the file is small) to make an image file, and then it can be used as a quick formatting tool in the future!