On my hard drive I'm putting Mac OS X86 on, it has all these formatted folders like $RECYCLE.BIN, System Volume Information, and stuff like that.
Should I somehow delete these? (How?)

And my hard drive is portioned into two, when i tried booting I Chose Fujitsu (Hard drive brand), but it didn't ask which portion to run off, and it said there was a boot error.

I'm using Windows Vista, but I have a Windows XP laptop if i need one to do something. I can't see the hidden files on XP.

And I Copied my OS X86 off a CD I bought, It works running off the CD. (on XP, dunno about Vista CD drive doesn't work. But I tried Vista at the store with it and it worked.)
The guy at the store said It was installing when I start it off the CD, and i should be able to choose which hard drive to install it to, It doesn't seem to do that (I don't give it much time though I don't wanna screw ups my computer). It doesn't give me the option of which drive to install to even when I do the -V thing.

So why can't I choose which drive?
Should I delete those Format files?
Will they get in the way?

Answers will make me love you.

Did you format your partition as extended journaled?