To boot to the XP cd, sometimes you ahve to press an F key to tell it where to boot. check when it first comes on and it will tell you to press F something for boot options or the likes

if you do that, you can go into the setup, press enter, press f8 to accept the agreement and it SHOULD give you an option to press R to do a repair install. this is not the same as the recovery console so if it goes directly to that option, do not proceed further. if you do R for "Repair Installation" it will overwrite your windows install but all your files, settings, etc will remain in tact.