Please review http://duxcw.com/faq/win/ntfs.htm.
>1… can I then copy back the files from FAT32 D, to NTFS C?
Yes, once XP is installed and if no mistakes are made when installing it. See http://duxcw.com/digest/guides/hd/rules.htm.
>2.Is it true that WinXP cannot convert my hard disk (with one partition of 60gb) to NTFS?
Yes. The conversion process requires some free space on the drive. I strongly recommend that you do not make the boot partition any where near that size for two reasons. The hard disk will be about 10% slower than one partitioned so the C: drive is 8-10 GBytes. It will take an enormous amount of time to defrag the drive.
>3.Or maybe I should keep FAT32, if I would need to reformat and install WinME back.
When going from Me to XP or from XP to Me, I would do a clean install. I would not go back to Me. XP is better if all of you hardware and software is compatible. That should be investigated first. Larry