Question : Problem: Win XP partition setup

I recently bought a new machine w/ 80GB hard drive, no OS. Installing XP Pro, I created a 10 GB partition to load windows into [NOTE: it will soon be evident this is uncharted waters for me]

Using the Admin Tool -> Computer Mgmt, I now have the following:

55 MB     unallocated   (Master Boot Record partition style)
C:     2 GB FAT, (System)
E:     9.77 GB NTFS (Boot)
62.68 GB    Free Space

The purpose of this machine is a file server/ app sever (just running accounting software w/ a DB app) for a 6 person peer-to-peer network.

Biggest pressing issue is that I've got the 63 GB floating free.

Ideally:
 - just 2 drives, one for the OS and the rest for storage.
 - do not have to reformat

Annoying:
 - each time i reboot, I can choose between Win XP or "unknown operating system"

Help & Suggestions appreciated...
Thanks - John

Answer : Problem: Win XP partition setup

C:     2 GB FAT, (System)
E:     9.77 GB NTFS (Boot)
62.68 GB    Free Space

where does the 2 Gb FAT partition come from ?

i would restart from scratch, boot from XP cd, and when it displays the partitions, delete them ALL.
Then create the 10 Gb you want , and the 70 Gb.
Then install XP on the 10 Gb partition; you can always format the other partition from disk management in XP
Start>control Panel>administrative Tools>computer management>disk management     - - - (or type diskmgmt.msc in the run box)

Here a good install guide :  http://www.michaelstevenstech.com/