Your best bet is to boot directly off the CD to install vista. Pop the disc in your drive and reboot. You may get a "Press any key to boot from CD" prompt while your computer is booting, or you may have to go into the BIOS Setup and set the CD drive to boot before the hard drive.
Doing this will let you format your entire hard-drive before starting the installation Select Custom Install, then select Advanced Options when it asks where you want to install to and you will get the option to format the drive. IMPORTANT NOTE: Formatting your hard drive will cause you to lose all data on it so make sure you have copies of everthing you want to save first.
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