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Just reformat. Install your OS (XP) on your faster drive (set as master), and don't partition at all. Your second drive, set it as slave, and use it as a multimedia storage drive. This can reduce fragmentation on your main drive (although you can't prevent it, especially with page filing... that is unless you disable page filing, but I wouldn't recommend that unless you have at least 1Gig or RAM). Do NTFS for sure on both drives.
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