Windows 7

You can't format the CD  

You can do a fresh install of windows 7 though. Check this guide.
http://www.sevenforums.com/tutorials/1649-clean-install...

i meant reformat my computer with windows 7 cd so i can wipe everything on this computer clean windows 7 before i give this computer to my friend instead of having to dig thru files to delete files and folders manually

I gotcha. Minor humor.

Follow that guide. It's fairly simple.

http://www.winsupersite.com/win7/clean_install.asp
http://www.winsupersite.com/win7/clean_install_upgrade_...

These Guides also help you!

lol... yeah i thought so myself but watned to clarify just in case  

thanks i think i know but just wanted to be safe and make sure also hehe