Hi Omar , I've just dealt with a similar problem. I suspect your Computer has a Pre-Install of XP .
"...my computer never came with an XP cd, i only have a re-load CD! ..."
You've got what is called a recovery Disk ,(?) which as you say will wipe your HardDrive and re-install WinXP from a hidden patition on the Hardrive to condition you bought it.
I'll say what I did recently.
The computer's registry was corrupt , and weighing the many hours of work and cost involved in rebuilding it the only option I had was : Firstly , used a program called Acronis and copied to an external hardrive all the data the customer specified .
Put in the recovery disk , this formatted HDD , then re-installed clean WinXP . Rang microsoft and got the activation key , quoting the no. on the green label on the Comp. Went online and downloaded SP2 and all Windows updates. Scanned all the data copied over from their HDD that I then put in a folder for them to organise. Mainly music , games , and documents.
Basically if you really think it's too far gone as far as restoring your system , ring around , get an onsite Tech. to come out . I charged $100 (AUS) . Last resort though, If you have the ability to repair the system , or a friend , go for it.
Good Luck !