Yes format it because:
A) It does not detect my Fixed Optical Drive aka my only DVDRom drive, no I do not have a CD Drive and...
B) It doesn't let me change anything in the BIOS, which in some cases it simply malfunctions and disables things on its own, but since I can only change the date and time, I can not configure it to detect any drives and...
C) It doesn't detect my HDD, so how am I suppose to install something on it without enabling it.

If you can answer any of these, let me know.

Edit:

I have found some WinXP Boot/initiate install floppy disks. I am thinking that if I start off with these, could the WinXP installation detect my drives, allwing me to switch to the CD to finish the installation and actually have a drive to put it on?

"why I've gotta be one of the cool kids just to walk by/
- without being tripped, thrown down on the ground and kicked/
Insulting me for no reason, I was treated like shit/
The teachers let it happen/
I've even seen some of them teachers laughing/
That's why I had a smile on my face when I started blastin/" - Ill Bill - The Anatomy of a School Shooting