Your errors probably have nothing to do with the way you formatted.
In Windows XP installation, you get 2 options, Format(ntfs) and Format(ntfs)(quick) . In both cases you get all the available space and a full format is not necessary and you shouldn't do this often. A quick format is not actually a format, it justs "marks" the drive empty, and marks all the used space as available.
In Windows 7 installation (and Vista), quick format is enabled by default. That's the only difference, cause you don't need to perform a FULL format in order to empty the drive. I think it's a smart choice from M$, makes things quicker even for beginners.
In any case, either you choose full format or quick format, you still get all the drive space. No differences can occur during installation, no previous files will still "exist" , concerning the system.