well... that's weird. The windows install CD should automatically pick up all installed HDDs and list them as options to install to (without the c: moniker). Can you see the drive from BIOS?
By mentioning that you do not have the Vista disc I am assuming that the laptop originally had Vista installed? You can get a copy of Vista (in the form of a Restore CD) from the manufacturer, the cost is generally $20 for most manufacturers. XP will run a little faster than Vista, but if you have 4GB of Ram or more than you will need a 64bit OS like vista or 7 in order to get the most out of your computer.