Vista ASR (Automatic System Recovery) is available only in the more expensive editions - Vista Ultimate & Vista Business.
First the corrections to your misconception about Windows Vista buzzwords, et al:
1. You are talking about HP Recovery CD, not Vista ASR.
2. There is no such thing as Vista ASR. It is called Windows Vista Complete PC Backup & Restore.
3. There is no such thing as Costco HP machine. Costco is a wholesaler that happen to be selling HP machines manufactured by HP.
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Question: 1. Do you need to create an ASR disc for this version of Vista?
Answer: Yes. You need to invoke Recovery CD/DVD creation tool from the start menu.
Can't find the tool? Look HERE. Tip: You will need two blank DVDs or one blank DVD-DL disc to complete this operation.
Question: when you first boot up the mouse does not function. Reboot and the mouse appears.
Answer: It should not be happening on a new PC. Take back the HP to Costco and request exchange. Costco has a 45-day no question asked return policy. CAUTION: The Return policy is voided if your friend threw out the original carton, papers, wraps, and everything else that came with it.
Question: How do you stop the Norton Security System Program from coming up on boot up?
Answer: Uninstall it by using Vista Programs & Features - Remove Installed Programs. It's not easy to find this feature under Vista but look HERE anyway for step by step instrutions that will get you there.
i_XpUser