hi,
u can format a partition by filesystem vfat with windows or linux and is quiet compatible
My recomendation is to install windows xp first on a NTFS partition to avoid mbr problem.Atfer that u can use the computer management to create fat32 paritions and leave free space for installing linux
Then install linux.Actually u can create and format a partition with vfat during installion(using windows installation setup and disk druid for linux) or after the installation of OS
even there are patches to read from ntfs partitions on the website
www.linux-ntfs.org.
regards,
Tom.