Samsung SCH-A970

I purchased the phone on 10/18, and so far so good. However being new to the MP3 scene, I have a few questions. I also purchased the transflash card for the phone and a Sans Disk 5 in 1 card reader. Do I format the card while in the phone or format it in the card reader? Also, having Windows XP do I need to install the software that came with the reader on my computer first? The enclosed instructions were not to clear to me. Thank you for any help received.