i formatted during the set up dont know about re formatting, just did it the one time. I didnt set up a partition, just used the C drive that it gave me as a choice.
Once you do the initial format/partition and the initial windows files copying (this is the setup screen that has the blue DOS background etc), the computer should reboot. The problem is you're booting off the CD (again) after the reboot. After the reboot it says something like "Press any key to boot from CD", do not press any keys as this will boot the files off the hard drive instead where you will proceed with the Windows installation.
Or after the first reboot, go back into your BIOS and select the boot sequence as Hard Drive 1st, CD-ROM 2nd.
Or after the first reboot, eject the Windows CD and insert it once Windows Install asks for it again.