So you went a bought a new copy of XP? Or have you tried to use a pirate copy of XP over a factory install?
When you tried to use the factory discs did you follow the instructions to the letter? Often on a machine with a pre installed OS, much of the data will already be on the machine in a hidden partition. Trtying to install a fresh OS from another disk is most liely the route of your trouble.
I think for an answer you need to provide some more information, describe what you did and what happened during your attempt to restore to factory settings.