I myself had same problem only my comp was from Tiny, who as you know went bust..The disk that came with comp has Limited recovery potential..ie the hard drive came with a mirrored image installed. When I had to "Fdisk" I was unable to reinstall using the system disk.
It did have the ability to repair the comp on this disk, which I successfully used a couple of times.
BUT if you have to wipe your hard disk you will have problems..I checked with the PC World Service Dept & they sais that THEY have solved this problem on my "Tiny" comp plus others.
I eventuall just bought the XP Home disc as It was far easier than getting it fixed..Try checking with "Time" & see if they can upgrade you to a Proper FULL program disk