This should be pretty straight forward.
When you see the "Welcome To Setup" screen, you will see the options below (This is where you stopped in your post)
This portion of the Setup program prepares Microsoft
Windows XP to run on your computer:
To setup Windows XP now, press ENTER.
To repair a Windows XP installation using Recovery Console, press R.
To quit Setup without installing Windows XP, press F3.
Press Enter to start the Windows Setup. do not choose "To repair a Windows XP installation using the Recovery Console, press R", (you Do Not want to load Recovery Console). I repeat, do not choose "To repair a Windows XP installation using the Recovery Console, press R".
Accept the License Agreement and Windows will search for existing Windows installations.
Select the XP installation you want to repair from the list and press R to start the repair. If Repair is not one of the options, read this Warning#2!
Setup will copy the necessary files to the hard drive and reboot. Do not press any key to boot from CD when the message appears. Setup will continue as if it were doing a clean install, but your applications and settings will remain intact.
This should help.
BMR777