to change boot sequence you have to get into BIOS setup by pressing a key (which usually is prompted to you during computer startup). even better, most recent computers allow you to temporarily change boot sequence without getting into BIOS setup by providing another key to press during startup time. just watch carefully during when you turn on your computer and press the right key and set it to boot from cd/dvd rom first.
once it is set, put in the windows setup cd and your computer will boot from the cd and yes it can help format your hard disk. re-partition and format is fully supported during windows setup so you don't have to format the hard disk ahead of time.