Space Problems on new hard disk

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Ok so two weeks ago I bought a new Maxtor 250 gig HD because my old HD went out. Now I install my new HD and format it with the Software that came with it (Max Blast 4) but it doesn't seem that it did it correctly. My CMOS recognizes it as 250 gig but when I try to intall XP it says that I don't have sufficient space to continue. Any help is appreciated. Thanks.
 
Always let XP format the drive. You have formatted the drive (already) and XP can't get in. Stick your MAXTOR CD in and see if the utilities offer an option to set up space for XP.
 
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