You can see how your drive is partitioned. If you have one partition then XP's diskmgmt cannot do anything. That is where you would have to use PM to create partitions from the C drive.
Another way would be to format the entire drive and when your installing XP create partitions. When your back in Windows go into diskmgmt and you can format the partitons you made [apart from where XP sits] You can also delete the partitons and make more/less and vary there size.
To backup to CD just use your CD software to burn data files. Anything you want to backup burn 'em.
OR use XP's CD burniing...Right click on files, send to, CD-RW Drive.
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