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When I first started using Ghost 2002 I had the same problem occur. It only seems to happen with some configs. I think what I did was put both the hard drives as on the same cable and set them master, slave. I then reset the bios. After that it worked. However, if all you want to do is boot from the 10gb and format the 4gb as ntfs can't you just fdisk the the 4gb when it is in the computer alone(also fdisk mbr) and then have XP format it from windows? If this fails low level format the 4gb.
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If you are having problems booting from the CD, make sure under "Standard CMOS Setup" all of the drives are set to "Auto" if any are set to "None", the PC very well can't boot off of something it doesn't know is there. Even if you have the PnP enabled.
