I hate upgrades, I would sugest giveing this a try if you don't mind the format..... I have head it works with 98 ME and 2k but wasn't sure if it was still possible with xp... I found a website with and artical saying it was... Maybe it will save you some cash since you should have a restore cd that came with the dell....
An Upgrade CD will do a perfectly clean install even on a new formatted Hard Drive. First it looks for installed components, does not fine any, Setup will ask you to insert a CD with a previous version of Windows such as any version of WIN98 to verify that you owe a previous version, after a few seconds Setup will ask to swap the CDs and VIOLA, it will do a clean install. Same is true with Win98 Upgrade that wants to see a WIN95 CD and a WIN95 Upgrade CD wants to see a few diskettes from WIN3.1 etc.
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