Install proplem

I think I have found why I cant dualboot my system with XP I have tried all sorts of different ways the last was an article on dual booting XP and Vista from MicroSoft themselves. I set the system files to be shown and the hidden files and folders, when I look in the root of C drive which is the disc Windows 7 is on it still has all the old file and folders from a previous XP install ie it did not format the drive when it first installed. Plus I have not installed any drivers yet everything is working just fine, even in the Device manager there are no yellow flags. Is this normal

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