|The second partition is the HP restore partition. Leave it alone.|
As for the remaining space the formatted size sounds about right.
This is an old topic. Drive makers measure GB as 1000mb and MB as 1000 kb
Windows does it's measurements using binary system where mb = 1024kb and GB =1024mb.
Therefore the reported size in Windows is always about 93% of the "advertised" drive capacity. You also lose a bit in formatting overhead. You cannot get 250mb of usable drive space out of a 250"mb" disk.
Goin' Fishin' (Some day)