You can use that disc to preform an XP repair. If you boot to that disc and bypass the first repair option, by hitting esc (I think), then bypass the next screen by hitting F8. You should then be able to preform a repair from the following screen by pressing "r". If you have a bad hard drive/ram/virues/spyware/etc this isn't going to fix that, but if it is a minor software "glitch" within windows this should correct it.

If this works, my advice would be to get into windows, back up any data, and preform a complete wipe and reload of windows using the same disc you used for the repair. This time delete and recreate the partitioin and then install windows on it. If you have no data on the pc that you need to backup just wipe it out now and don't bother with the repair.