Received the following reply from Dell Technical Support. If you are deploying a O.S. with the Systems Build & Update Utility, the Update Utility will actually recreate the 2 partitions you mentioned, those partitions contain Dell utilities that are available at the start of boot, by pressing the F10 button, when prompted. The utilities include memory and hard disk checks. But are non essential to the day to day running of your server.  
We have a new PowerEdge T110 purchased without OS installed. I am using the Dell System Build and Update utility to install Windows Server 2003 I have got through all the info screens up to 'Operating System Information Summary' where it says the following "All existing partition(s) on this physical disk will be deleted and all data will be lost.  The disk contains the following partition(s):" /dev/sda1    70 MB     Dell utility /dev/sda2     2055 MB   W95 FAT32 Is it safe to carry on and let this happen? It seems rather odd that the utility Dell reccommend for installation actually deletes Dell's own partitions - they must have been put there for a reason.
Installing OS with Dell System Build utility