|OK, Here is what you need to do then.|
You have internet on another computer. Download a live version of Linux. The version called Puppy is small and will easily install to a flash drive. Once you have Puppy on a flash drive you can boot to the flash drive and run Puppy right off the flash drive without any installation.
You will need to enter the BIOS (setup) screens at start up and change the boot order so the computer boots to puppy.
Set the boot order as follows: USB flash first, CD second, hard drive third.
You also need to set the hard drive to run in an IDE mode or WinXP can't install to a SATA hard drive without additional drivers. That is the easy method.
Puppy is very similar to Windows so you shouldn't have any problem using it.
Copy all the files you wish to recover to a USB drive or to a CDR or DVDR. All those devices should work in Puppy. After you verify you have actually copied all the needed files by viewing them on another computer you can then begin to install WinXP.
You boot to the WinXP CD by inserting it in the drive and restarting the computer. Watch for a screen hit any key to boot from the CD. Then choose advanced setup when given a choice. You then want to delete ALL partitions and then create one partition using all available space. Then format using NTFS, which is the only choice you will have. Then let WinXP install.
One other thing to note. IF your copy of WinXP does NOT include any service packs you will only see 127GB on the hard drive instead of about 149GB, which is the actual capacity of a 160GB drive. IF that turns out to be the case we can recover the remaining space after you update WinXP.
Below are two links. The first is to Puppy. The second to WinXPSP3 distributable version. If WinXP doesn't want to update then you will need to get SP3 from that link.
You also need some protection. Microsoft security essentials should be fine for your purposes. Get it from the link above. Install security essentials right away. You will need to install Windows Genuine Advantage first. MSoft will walk you through that when you go to update WinXP.
If some hardware doesn't install correctly we can help you with that at that time.