Upgrade to 320 gb HD

I have a brand new 320gb HD, Mator. My OS is Xp sp2.
Intell pentium III EB 933 MHz
chipset: i810e
Optiplex GX110

Bios: Dell Comp. Corp. A09
256 mb memory...and I'm going to upgrade this also...to 512.

My current HD is 20 gb. If it's possible to use this large HD, is it best that I partition it or just install as is. If i partition it do I lose space. How should I partition It..2ways, 3ways, 4ways. Can I keep my old HD and use the new one as a slave drive. I want to store mostly media files on the new one. And how should I format and partition the file system it Fat or NTFS

:confused please, advise.

 

Your PC is pretty old. Before purchasing the drive, be sure that your PCs hardware can even recognize a drive that large. MANY older PCs will not see large drives correctly, and they have a limit of approx 130gb. (I think it's 127g or 128g). In order to use the drive correctly, you may have to flash your BIOS if an upgrade is available that addresses this issue, or hook up the drive to PC that can handle the drive size and cut it up into 3 partitions of +/- 100gb each before hooking it up to your PC.