Close any program or utility that may start to run after you insert the CD into the drive.
HINT: The CD that you need to place in your CD or DVD drive is titled Operating System.
If you wait too long and the operating system logo appears, continue to wait until you see the Microsoft Windows desktop. Then shut down the computer and try again.
If you want to install a new copy of Windows XP, press to select the fresh copy option, and then press on the next screen to select the highlighted partition (recommended). Then follow the instructions on the screen.
The Windows XP Setup screen appears and Windows XP begins to copy files and install the devices. The computer automatically restarts multiple times before it requires additional input.
If you are reinstalling Windows XP Professional, enter a name for your computer and a password when theComputer Name and Administrator Password window appears, and then click Next.
Windows XP begins to install its components and configure the computer. The computer automatically restarts.
SOURCE: how can i restore my dell dimension to factory set...
to restore the settings you have to follow the steps
Instructions
Windows XP
thanks
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