Wipping a external drive and creating a partition

I am running Win 98SE on a 40GB drive with a C and D and have a 4.3GB drive in an external case connected by a PCMCIA card which show in My Computer as removable G. I have formatted the drive and can store info on it but in its Properties it shows that it is a 80+GB drive[see attached photo]. I want to put the drive in my laptop[I have a carrier for it as it was my original drive] and try to load Win 2000 Pro on it before I put it on my current 40GB drive. I get as far as it wants to start installing the Win 2000 and there is no partition and the values are incorrect. How do I wipe it clean[the only thing on it is the system files I think] and create a partition on it while it is connected as an external drive. I have partition magic but it does not show up there, just my two partitions of my active drive [the 40GB one]. Any help would be appreciated. I am getting too many computers and trying to do too many things I think,to old for this.

quickshot

 

I probably goofed but I put the small drive in the computer and booted to a boot disk and ran Fdisk and removed ALL partitions and reformatted. Put my Win 2000 Pro CD in CD drive and booted from it but said invalid system disk. I shut down and left the CD in and booted from a floppy boot disk and tried to install that way, at the A prompt typed E which is my CD drive and then setup but received and error about not being able to install from DOS. I need a step by step on what or how to do if there is a site to go to for that. I probably deleted something that I should not have. The information in properties is now correct and I can still store files on it when accessed thru the PCMCIA link up.

quickshot