Reformatting XP Question

I thought I had gotten rid of the spyaxe trojan, but my AVG still seems to detect.it. I went through HJT, ewido, scanned with online Trend Micro, and these programs don't detect it but AVG still did. I'm going to reformat, and the last time I did it asked which type to do. NTFS? Quick format? Which combo should I use to reformat this Dell? I have the original XP Home disc. Also is there a way to partition the hard drive now that I am reformatting? Thank you.

XP Home SP2, Spybot, Spyware Blaster, AVG, AdAware (all with latest updates)

Well, before we reformat, do you want to try to remove it first? I think you do :)

Spyaxe, as my studies show, is a trojan that imbeds itself in system restore files. You need to remove ALL system restore files from your system to help clean it. :
On the Desktop, right-click My Computer.
Click Properties.
Click the System Restore tab.
Check Turn off System Restore.
Click Apply, and then click OK.

Restart your computer and do all the scans again, and use anything detected to remove it.

Restart again, and turn system restore back on. This should take care of it, please report back

If you do decide to reformat, choosing the NTFS quick format option will accomplish what you need.

Thank you for the replies. I had tried to remove it already with but AVG kept detecting it still. So I decided to reinstall anyways. Thank you and I will use the NTFS quick install.

Thanks!