Hard Drive Formatting help

I want to clean instal windows vista ultimate 32 bit on my new hard drive.
I need to know if I need to boot my with my other HD to format it before installation. Here is the new hard drive that I am going to install Vista on:

http://www.newegg.com/Product/Product.aspx?Item=N82E16822136073

If I do need to format my hard drive, should I just use windows' own formatting tools or some thir party application? And what are the diferences between the different file systems (etc. fat32) and which one is preferrable?

Please contribute if you have anything that will help
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More about hard drive formatting help
  1. Step by step for installing vista on a new drive. This should answer most of your questions:
    http://vistaenterprise.windowsreinstall.com/installnewhdd/installnewhdd.htm

    As for the other: Always choose NTFS, IMO, because file and folder encription is not available on fat32 and you are limited to 4gig file transfer with fat32 and 16tb with ntfs.
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