Let it boot from the CD, then wait while it loads some files. It will come up to a blue screen that gives you the option to hit ENTER for set up, or R for a repair by using the recovery console. That is when you hit R. Some computer manufactuers (Compaq for sure), don't give you an XP install disk, but rather a company issued restore disk (or set of disks). The company issued disks don't act the same as the genuine XP disks. Charlie