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If you do that, you will lose all bazaar prices, ui setup, hotkeys, spell sets, and so on and so on. when I copied between two vastly different pc's, it fixed my video card and all that option stuff automagically (I know because the first thing I did was go in to fix it, and it already had new info).
That's very true and a good point. However, since he reformatted his PC and trying to install from CD, I doubt this is as much of a concern.
To be specific, you could only delete the EQDefaults.ini, and any UI_Character_Server.UI files you run across. Leaving all others will keep your bazaar prices and hotkeys/friends lists intact, if that is what you desire to do.