Count yourself lucky that you got a restore disc Alot of manufactures save money by not issuing any discs at all.
Are you entitled to a full disc? That ones is open for discussion.
What you have is a preinstall OEM version of XP home and a license to use it (sticker.)
OEM versions die with the machine and are not transferable, the manufacturer considers the HDD as the maachine which therefre makes your life harder if the HDD dies and everthing else is ok.
DO NOT alter any partion sizes or fromat the HDD as this will render the recovery useless as well.
The best option is to make an inmage of the HDD using Acronis or simular.