Well, if your gonna F&R it, depending on the OS you choose, it will take care of that problem. If you install windows XP, it can switch workgroups dynamically, so really, it will configure itself. On Win9x, you'll have to specify the ip and a few other things.
One thing, if you are getting broadband, and are gonna network, get a router.
EDIT:
As far as the HDD, open up the case and make sure the power and ribbon cable connections are good (ground yourself first). Then boot it up, check in bios to see if it is detecting the drive, if it does, it is getting power for sure. Try it again, (the format or whatever). If there are still problems, check to make sure the jumper settings on the drive are correct (if these are wrong it also might appear wrong in the bios, or not at all).MOST LIKELY you have a bad drive, but there are a few things you can try after that.