Before you install your operating system, you must first create a primary partition on the hard disk (disk 1) on your computer, and then format a file system on that partition. The Fdisk tool is an MS-DOS-based tool that you can use to prepare (partition) a hard disk. You can use the Fdisk tool to create, change, delete, or display current partitions on the hard disk, and then each allocated space on the hard disk (primary partition, extended partition, or logical drive) is assigned a drive letter.
Disk 1 may contain one extended partition, and a second hard disk may contain a primary or extended partition. An extended partition may contain one or more logical MS-DOS drives.

After you use the Fdisk tool to partition your hard disk, use the Format tool to format those partitions with a file system.
The file system File Allocation Table (FAT) allows the hard disk to accept, store, and retrieve data. Windows 95 OEM Service Release 2 (OSR2), Windows 98, Windows 98 Second Edition, Windows Millennium Edition (Me), and Windows 2000 support the FAT16 and FAT32 file systems.

When you run the Fdisk tool on a hard disk that is larger than 512 megabytes (MB), you are prompted to choose one of the following file systems:

• FAT16: This file system has a maximum of 2 gigabytes (GB) for each allocated space or drive letter. For example, if you use the FAT16 file system and have a 6-GB hard disk, you can have three drive letters (C, D, and E), each with 2 GB of allocated space.For additional information about the FAT16 file system, click the article number below to view the article in the Microsoft Knowledge Base: 118335 Maximum Partition Size Using FAT16 File System
• FAT32: This file system supports drives that are up to 2 terabytes in size and stores files on smaller sections of the hard disk than the FAT16 file system does. This results in more free space on the hard disk. The FAT32 file system does not support drives that are smaller than 512 MB.For additional information about the FAT32 file system, click the article number below to view the article in the Microsoft Knowledge Base: 154997 Description of the FAT32 File System

When you run the fdisk and format commands, the Master Boot Record (MBR) and file allocation tables are created. The MBR and file allocation tables store the necessary disk geometry that allows hard disk to accept, store, and retrieve data. For additional information about MS-DOS partitioning and a hard disk geometry overview, click the article number below to view the article in the Microsoft Knowledge Base: 69912 MS-DOS Partitioning Summary

After you create the partitions, you must format the partitions. To do this it is necessary to restart your computer with the Startup disk in the floppy disk drive.

For detailed instructions on the use of Fdisk, click here.