Is the 4GB your "C" and the 60GB your "F"? And are both drives formatted NTFS? If the "F" is formatted NTFS, WinMe will NOT be able to read the data from it. You'll have to either burn all that stuff to CD or use Partition Magic to convert it back to FAT32. Otherwise, you won't be able to use it again until you get XP back on it.
I don't know what your Recovery CD does, so I can't say for sure if it will/won't let you format your drive. I would just use a floppy, if you don't have one, get one from
Bootdisk.com and format w/ it.
If you're wanting to use your 60GB as your main drive, again, you'll have to burn all your stuff to CD or use Partition Magic to make it smaller, then create another partition at the beginning for your OS. Otherwise, you'll have to just 'FDISK' it into smaller partitions and then 'FORMAT',
that will lose all your data.