Morning Sideliner,
When you said that your drive has two partitions I presumed that the smaller one would be for the programs and the bigger one for the data, as would be the most logical choice. Wrong, thus.
Let's start with FAT and NTFS. Both are an organisation to write files on a disk, FAT being the older one from the DOS times and NTFS the newer one from NT and XP upwards. These are Windows standard; Linux and Unix e.g. use again a different ones, but these both can read and write FATs and read NTFS. There is nothing wrong with either system; what disturbs me about NTFS is that, to my knowledge, it makes the files only accessible if Windows itself is running, so when Windows goes bust you have had it if you are using only this OS. What's more, Windows restricts the user in what he is allowed to do with the files and directories, unlike DOS and Linux. This is why I prefer FAT; after a desaster I can still load my DOS with a floppy and do anything I want. That is most probably also the reason why your 9GB is a FAT system. Smart guys at HP.
What follows now is if you want to take some trouble and time to make things right. If you want to leave things as they are and are content with just a single backup on an extra drive, you can save yourself that.
What I would suggest you do is that first you make, no: HAVE TO make, a complete copy of your data and not-installed executive files onto your new disk because you will next change your internal HD with a GNU re-sizer. Check whether indeed everything is well copied over before you disconnect your back-up drive (and any other internal, for that matter), so you can not make a mistake here.
******
Then go here:
http://www.sysresccd.org/Main_Page , read that and download the ISO file from here:
http://www.sysresccd.org/Download
Burn a bootable CD from this ISO file and boot on this CD. Now with GNUparted you can erase your existing partitions and create two new ones, the C: with, say, 15GB and D: with the rest. The file system you want to choose is either NTFS or FAT32 (VFAT).
******
The things between the ****** and the ****** you can also do differently, if you can get a bootable floppy with DOS7 (= Windows98) and fdisk.exe and format on it. Boot with the floppy, call fdisk, say yes to large FAT32 and delete first all partitions. Then create with option 1 one partition of 15GB and make that active with 2. Then create the second partition using all the rest of the space. Check whether everything is right with 4. You then re-boot on the floppy and format the partions, although the WXP installation will automatically do that for you, if I remember that well.
This is the main procedure continuation:
Boot with your XP CD and make a complete installation of Windows and every application you want to have running; install Windows and the applications ("program files" folder) all on C:. If you before have chosen the FAT system, the installation will ask you whether you want to make it NTFS. You can do that, but I have not noted a markable speed difference if you keep the FAT system.
When everything is installed, connect the external drive again and copy everything, except the Windows- and the Program Files directories, to your disk D:. Erase the Windows- and Program Files directories on your backup drive.
Ready. It will take you about half a day to do all this. Do not fear, because you will be guided through most of the process and nothing can happen to your data as they are safe on another drive, well, that is, as long as you do not mistakenly erase the back-up. Don't laugh, it happened often enough. Doing this also gives you a feel how things work and what you can do if something goes wrong later on.
If you later on connect a second internal drive to your machine, Windows will automatically detect it if it is a standard drive; if it is a SATA drive you will want to run New Hardware in the control panel after connecting it the first time.
Not being an US citizen, I was in a different army. Because of all those Commies around at those times, 40 years ago in Europe the draft was standard, and they put me in a LRPG. I still prefer solid ground under my feet. :-)