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Reuse old system disk after transfer of OS to a new disk

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I recently transferred my system partition to a larger disk moving from a 120 to 300GB SATA drive. I was able to easily clone the disk and move the image to the new drive. I have disconnected the old disk as prescribed and restarted the system… works like gangbusters. I defragged, backed up and made an image of the new disk to protect my system.
I would like to slick and reuse the 120 GB drive, and place it back into the system as a small data drive for word files. Because the new system disk and the old system disk are both active primary partitions, and both have the drive letter of “C” for the system disk, how can I reintroduce the old disk back into the system and reformat it without possibly corrupting the new system disk.
The OS I run is XP Pro SP3, all disks on the PC are basic type disks, and both have one primary partition and three extended partitions. Currently using ATI Home 2009 (build 9709), I have the latest update (9809 [not yet installed]) and plan to upgrade to ATI Home 2011 once I have everything completed.
I may have missed a response to this question elsewhere within the forum, but I did do a search and read numerous posts I thought would resolve this issue before I posted. Any advise would be greatly appreciated, thanks.

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Bruce,

One way to do it is to cleanse the drive from the ATI recovery CD. You plug your old disk back in, you boot with the recovery CD and in tools, you use drive cleanser. This will erase all data and all partitions. Then you can reboot. Disk management will show you a disk with unallocated space. YOu can then create a new simplet volume, partition, assign a drive letter from Windows.

Another way is to do everything from the windows installation CD on which you boot. You use DISKPART from a command line to delete your partitions, create new ones, etc....

Pat,
Thanks for the advise!! I figured there was a simple solution to the problem of reusing the disk. One question, if I am using my ATI recovery disk to cleanse the old system disk, should I disconnect my new system disk from the PC before running ATI recovery to avoid possible confusion and slicking the wrong disk?

Avoiding confusion is good. The recovery CD will use letters for the disk that are probably different to what you see in windows. If you look at the size and label though you should be OK.
Disconnecting the drive is a good precaution anyway.