I would reformat completely and start from scratch. You could dick around with a partition program but it sounds like it's a mess already. When you reformat make sure to delete all partitions (except the 54 MB one, it sounds like a diagnostics partition) and make one big one. The XP installation should give you the options to do this.
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"A Darwinian attacks his theory, seeking to find flaws. An ID believer defends his theory, seeking to conceal flaws." -Roger Ebert
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