You don't format from the Recovery Console, if that's what you are trying to do. You format by electing the Install option on the XP CD.
The Recovery Console is primarily for repair purposes.
When asked for a password to run RC commands, just hit Enter (there is no password).
Clean Install Procedure with Illustrative Screen Captures - http://www.theeldergeek.com/xp_home_install_-_graphic.htm
Since you don't have anything to lose, just do a clean install following guidance above and don't worry about what you have already done.
You will need to delete any partition which shows up as existing...when you do your clean install. Then you will create a new partition, format it. XP will install itself on that.