This isn't a screenshot from my PC, but I googled "Windows Setup Utility" and found something similar that comes up for me when I press F2. It looks something like this:
Well you need to go under the Boot option there and make sure it is set to boot from your Optical Drive or CD drive BEFORE the hard drive. That is critical to get teh Windows XP disc loading.
-Nope, still doesn't boot.
-I know it isn't a bad CD, because yesterday I reinstalled XP. I noticed all it did was install on top of my old files and stuff. My PC was working until I tried wiping the hard drive with power max.
-It isn't a laptop, and I am unsure if it is still under warranty.