From a previous thread he said he was going to buy Vista SP1. There's no reason you wouldn't have the Drive Options link. Try reinstalling the OS and double check to make sure that the link isn't there. If it is you can format all your drives from there.
EDIT: If you mean that you have two HDD's in the system and you loaded Windows XP on the drive labeled as D:, then you can partition your drive C: from Windows.
1. Right click "My Computer" and click "Manage".
2. Under the "Storage" tab click "Disk Management".
3. Right click the "C:" drive and click "Format".