The Windows installer is fairly self-explantatory. If you're unsure and have hard drives with existing data disconnect all other power cables, with only power & data connected to the drive you want to install to. That way you won't accidentally delete partition/format your other drives and lose all your data!
You can can either setup a 100% of the space to the partition, or create several. Ie 30GB for Windows & application files, then the rest for games/data.
Format it to NTFS, quick (full will take hours) Google search for windows walthrough. It's not that hard. Try setting up multiple autoexec.bat and config.sys files for expanded memory, extended memory, mixture of the two, soundcard drivers, scanner, printer, videocard mouse all trying to fit within 1MB of RAM with enough base memory to run applications!