|Your Disk Manager disk should have a drive overlay on it. And you don't need to set up the drive on an XP computer. Just use the 486.|
First check to see if the drive has a 'cylinder limiting jumper'. If so, jumper it and 'auto detect hard drive' in cmos/bios setup should see it as ~520 meg. If not, attach the drive as is and ID it manually in cmos/bios setup as an accepted drive type.
Then boot up with the Disk Manager disk and install the overlay.
Once installed, the overlay has to load first in order for you to access the entire 1 gig so don't boot directly with a floppy bootdisk. Leave the bootdisk out and start up the PC. After posting you'll get a message something like 'press CTRL to boot from a floppy'. That means the overlay has loaded and you can then use a bootdisk. Then partition, format and install your OS in the normal manner.