I have a Dell Demension 2100 I've had for a number of years.  Over the years it became really slow and I felt it was completely "JUNKED" up with needless things I'd accumulated over the years.  I chose to have my hard drive completely wiped out and REINSTALL my operating system.  First time I had no trouble reformatting and getting back on track.  A while later, I chose to do this again.  This time I get an error stating "error formatting hard drive".  I haven't fooled with the computer in a few months and have since just PURCHASED a new laptop.  Now I would like to fix the computer and give it to a friend who is without.  The error MESSAGE does not specify exactly what the error is.  I know nothing about computers.  When I begin formatting I'm asked if I want to dedicate all memory to the operating system...I say yes.....Don't know.  Anyway...is there something else I should be doing or is the hard drive bad and need a new one?  Thank you in advance for any advice!!  We need to know what are exact words of your error, and at what point of your installation it happens.
You may double check steps for Windows ME clean install here:
http://wiki.oldos.org/Windows/InstallWinME