| Sounds like the OS either needs reloading from scratch and/or the HDD is stuffed, either way you've probably lost the lot to be honest.
Your recovery CD's are a a waste of time in situations like this as they will only allow you to start from scratch as you haven't got a direct copy of XP.
Also being a lappy, unless you're going to fork out some cash to plug a 2.5 inch drive into a standard IDE connection to master/slave two drives using a standard PC it's unlikely you'll get the data back.... one of the joys/banes of owning a laptop unfortunately. | 
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