Thanks for responding to my question Allen.
1. Yes the DVD is original retail copy of windows Xp.
2. No, I have not used this CD to install windows in another PC.
3. Yes, I full activated windows when it was first installed. I received a response.
4. No, the next to last time I booted up I had no problems. The PC came up normally.
I am thinking of starting over at this point. I am not sure If I should stay with XP or move on to Windows 7. I do not know if one is really better than the other. Thanks.