|When a NTFS OS (at least up to XP) is installed on a drive, instructions are placed in the boot sector to look for the file named NTLDR. If that drive is subsequently formatted NTLDR, along with all the other files, is removed. But formatting doesn't affect the boot sector so the instructions to look for NTLDR remain. So if you then try to boot from that drive you get the 'missing NTLDR' message.|
In order to remove those instructions in the boot sector you need to run FIXMBR or with dos or 9X, FDISK/MBR. After that, attempting to boot from the hard drive will give you a 'missing operating system' message.
There are other ways to get the 'missing NTLDR' :
but given you've just formatted, that must be the reason.
If you're actually booting from the cd you shouldn't be getting that message. As already mentioned, make sure your boot sequence is correct. Make sure you get the 'press any key to boot from cd' option on the screen. If you don't 'press any key' it will boot from the hard drive after a few seconds even if the cdrom is the first boot device..
If your 'copy' of XP is not the original or not a copy of the original but a disk that somone has cobbled together the above may not apply.
XP doesn't have ms dos but most ms dos commands work just as they do with dos and 9X in XP's command prompt. However, in recovery mode those commands are very limited.
Now that's what I call a sticky situation