Now we got the new PC set up and running downstairs, I'm thinking I might just completely wipe this PC (old shitty thing that it is) and start over completely new and install XP that came with the new one (I guess you can do that right? Got the XP start up CD, so should be able to install that on this PC right?)

So how do I actually go about wiping everything on this PC, including operating system (Win 98 SE) and starting a fresh?