Dban will work from a floppy I think.
I would aslo conside disconnecting the promary 20 GB, and hooking up the CD and using that to format the drive via XP CD install.
In general newer version of Ghost ( V 8 and newer ) can handle unformatted media.
ALternatives :
Ghost and disk image free tools, Ghost alternatives
http://ghost.radified.com/ghost_alternatives.htm Try this ,it's free .
http://www.runtime.org/dixml.htm Free backup Software,
I hope this helps !