I'd like to add, Once your using windows xp after you've got files replaced etc.
it is very unstable and generally it comes up with more problems and stuff.
reason your get the coice between setup and default xp install is because you booted from CD and went whole way thru the options there for xp looks if its doing a new install.
I'd highly recommend that you format your laptop and start over again.
After stuff like whats happened your laptop will suffer preformance drop, and there will be other corrupted files about that will result in other stuff not working.
You have nothing to lose so why waste time patching a laptop that will result in a preformance drop??
Only reason you need to do that is if you have important stuff on it that you need from your posts you got of what you needed so just format it.
You can format by runnning thru the xp install.
it will take you to select which drive to install xp on but before you do that. select the C; drive and delete it usually dont by
hit D then takes you to another screen you hit L then you hit enter(some where along those lines)
select the unparititioned drive you just created press enter. select to format quick using NTFS.
and of you go just fill in what ever else is needed when it comes up.
CD key default Lang ,Lapop name and so on