TP240 recovery

[tp240]

Help! I have a TP240 configured as follows: Compressed C drive that keeps running out of space, compressed G drive, a "host for C" drive named H and a D drive. I would like to reformat and reinstall a basic Win OS in order to sell. the TP comes with a floppy drive. the TP itself works fine except for the occassional "you have run out of space on C" message and also reads from my Sony CD ROM.

Any ideas on how to proceed. Does it make sense to just reformat so the TP boots to a MS DOS C prompt and leave it at that? I'm assuming a TP in that state would be attractive to a Linux installer. Thank you for any suggestions.