ComputerMan23,
I would follow dc3's advice. I just completed the exact same task, except I wiped out XP and went with VISTA. You can also use a program called CopyWipe which you can get from here:
http://www.terabyteunlimited.com/copywipe.php Get the DOS version. since you want to boot from the CD or floppy anyway. A single pass of zeros is enough and should take approx. 2 - 5 hours depending upon the size of your drive and how much data is on it.
Boot from the XP CD, create your partitions, format them and you're off to the races.
I would also go to the Dell Support site to get all the latest drivers for your laptop. Search by model (once you decide which model you are getting) and make sure you select XP as the operating system. After XP loads up, install the drivers in this order:
1) Motherboard/Chipset
2) Integrated Graphics controller ONLY if you do NOT have a 3rd party video card
3) Video driver ONLY if you do not have an integrated card
4) Network drivers (regular & wireless LAN)
5) Sound/Audio Driver
6) Modem, Firewire (if available)
7) Mouse, Keyboard, Monitor
Now go ahead and install your other applications.