I have no way of know what is installed on it, if you had a working antivirus program, you could set it to scan the drive.1) How likely is it that the backup D: drive could also be infected?
Some information that should help
http://spyware-free.us/tutorials/reformat/
http://www.cyberwalker.net/faqs/how-tos/reinstall-faq.html
http://helpdesk.its.uiowa.edu/windows/instructions/reformat.htm
Hope this helps.