Compaq Evo N1020v operating system not found. I dont have recovery disk and also it dosnt seem to pick up xp when I insert into CD Drive. What could be the exact settings to boot from CD Drive?

Merry Xmas.
Yes you have a read error. When booting press F8 and go into Safe Mode or Recovery Mode. From there Windows, assuming it is Windows OS will attempt to repair itself.
Hope this helps.

Please uninstall all the USB Drivers from the Device Manager and then restart the Computer. The USB Drivers are Operating System generic Drivers. The Computer will reinstall the Drivers for USB automatically

Try the recovery console from a windows xp recovery/install disk:
To run the Recovery Console from the Windows XP startup disks or the Windows XP CD-ROM, follow these steps:
1.Insert the Windows XP startup disk into the floppy disk drive, or insert the Windows XP CD-ROM into the CD-ROM drive, and then restart the computer.
Click to select any options that are required to start the computer from the CD-ROM drive if you are prompted.
2.When the "Welcome to Setup" screen appears, press R to start the Recovery Console.
3.Select the operating system you want to repair (you may have only one option).
4.When you are prompted, type the Administrator password. If the administrator password is blank, just press ENTER.
5.At the command prompt, type the appropriate commands to diagnose and repair your Windows XP installation. From here I would try "chkdsk /r" and "fixboot"
For a list of commands that are available in Recovery Console, type recovery console commands or help at the command prompt, and then press ENTER.
For information about a specific command, type help commandname at the command prompt, and then press ENTER.
6.To exit the Recovery Console and restart the computer, type exit at the command prompt, and then press ENTER.
Once you've done this restart the computer and see if it boots up.

On my Compaq Presario Windows 7 laptop, I have got "Operating System not found" error, to fix problem,Windows Boot Genius helped me finally!

You have a sick laptop, could be simply a faulty power adapter to a faulty motherboard. The Evo is old and probably not worth fixing, better to put your money towards a new laptop.
There is a way to retrieve data from your hard drive provided it is not faulty.
Remove the hard drive from the laptop and connect it to an USB hard drive adapter. Insert the adapter into a working computer's USB port and the computer will see this as an external hard drive. You can then open the folders and view your files. Copy the various folders and files you require to a USB memory stick and/or burn these to a CD etc.
It pays to backup your data regurarly because if the hard disk fails and this can happen unexpectedly, you will lose your data.
If the hard drive is faulty, there are companies that can retrieve data from faulty hard drivers, but it will cost you an arm and a leg for their services.

"tried to" do you mean it finished installation and it was succesful? I doubt that

I think you realy have to do the installation again
the best way is to delete all partitions and format
after.

please try to remove the connection between motherboard and vd/dvd drive.

then perform the previous steps.

press f10 during startup , when the bios open, look for the setting "halt on" . it will have a choice of keyboard, all errors or no errors , set it on "no errors" save and reboot. that may fix it.
You could also get another keyboard (neighbors or a new one) and test to see if a new keyboard solves the issue without recovering your system.
you can also use the recovery CD that came with your system:
USING THE RECOVERY CONSOLE TO REPAIR DAMAGED
FILES
If you cannot start your computer, you can run the Recovery Console from operating system CDROM
provided with the PC. To run the Recovery Console from the operating system CD-ROM:
NOTE: Make sure that the system is configured to boot first from the CD-ROM drive, then from
the hard drive. You can verify or change device boot order using the Computer Setup (F10) Utility.
For more information, refer to the Computer Setup (F10) Utility Guide provided with the
computer.
1. Insert the Windows 2000 or Windows XP CD-ROM into the CD-ROM drive.
2. Click Start > Shut Down, then select Restart from the drop-down list.
3. In the Shut Down Windows dialog, click OK.
4. Press any key to start the computer from the CD-ROM drive when you are prompted to do so.
5. On the Welcome to Setup page, press R.
6. Choose the installation that you want to access from the Recovery Console.
7. Type the administrator password. If the administrator password is blank, press the Enter key.

you need to get some operating system.
like XP or Vista.
you can get XP disk with some of your friends if they have..
or you have to buy those operating systems...
and after loading disks into your disk drive disk is autometically get started...to load XP or vista..

Restart your Compaq Evo N1020v laptop without the card inserted. Go into the BIOS (by hitting F10), change the UMA Frame Buffer Size from 32MB to 64MB (located in the Advanced menu), reboot and install the card drivers and insert thecard. This should fix the problem.