|I'm not sure what you mean by "They only show up in a very old card making program they do not show up in my computer".|
Is the actual path C:\Documents and Settings\Localservice and C:\Documents and Settings\NetworkService?
If so, they are hidden by default and part of the WindowsXP OS. You can't easily (and shouldn't) delete them.
If you want to reformat your drive, do you plan on reinstalling XP or something else? Fdisk will work to a point, but not if your partitions are NTFS.
And, just to reiterate, you are now working with "Folders" not "Directories."
I'm just curious as to why you'd want to format though.
Life's more painless for the brainless.