I believe one of the so called "Rescue & Recovery" disk is the full version of Windows.

What happen if you booting up from the Windows disk - format and reinstall Windows into it, does it solve the problem?

What Windows license this machine is having?

Check the label that attach to the casing of the pc.

If it is Windows Pro license, you can use any OEM Windows XP Pro CD to install the Windows.

When prompt about the serial number, just key in the number from the label.

This post has been edited by WebWalker: Jun 14 2008, 12:09 PM

What are those two "Rescue & Recovery" disks?
Are they in CD format or DVD format?

If you want to format and reinstall Windows XP into the system, then those Recovery disk can't be use because they are mean for Vista.

Am I right to say it?

This post has been edited by WebWalker: Jun 14 2008, 12:30 PM

Legally you should buy another XP license for the system.
Vista license don't cover XP, unless it is downgrade version of Vista to XP.

Also at the same time (as someone has mentioned), try to find out the maker of hard disk. Go to the site and download the HD diagnosis program to check your HD health.

This post has been edited by WebWalker: Jun 14 2008, 12:35 PM