1) all the software you need for compiling, burning cd's (music or data) are on the installation cd's. If you don't have the cd's (and you friend does), find out how much of a friend he is and ask him to install them for you. If he won't, it's all available on the internet, free except for your time to d/l and install.
2) a binary package runs 'out of the box' when you install it, no compile necessary. a source package is source code which must be converted to object code (read binary) by compiling the source code.
3) you will have to divide your new hard disk into at least three partitions; one for xp; one mandrake; and one for swap. You might be able to boot mandrake from the install cd and use the partition tools provided by mandrake to create the three partitions. I don't know; I've never tried it. after partitioning the drive, install xp first, then linux. Mandrake should check to be sure you have a linux and swap partition to install into.
for more info, check the mandrake website, and google up a copy of the Linux Partition HOWTO.
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