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Are you sure it's a 40Gb ? OS's don't usually misreport the size. Check in the bios and see what it says. The drive could well be faulty, 40Gb's are getting a bit long in the tooth now. Another possibility is it was previously formatted as a compressed drive.
Easiest way is to use a program like Partition Magic. You'll need to delete the partition and then recreate and format it. First thing is check what size the BIOS is reporting for the drive. If its the correct size and Partition Magic or similar is'nt available you can do it using the Windows install disk.
Disconnect any other HDD on the machine to save confusion, set the Maxtor as a master and boot from the Windows CD. Accept the defaults until you get too the page where it asks "Use existing partion" etc. Delete the partition, recreate it as NTFS or Fat32 whichever you need and let it format. Stop the setup at that stage before it starts to install the OS.
A bit complex but has worked for me several times.
Cheers
Bill
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