Not sounding good… I wouldn’t bother with the XP disk though – gone end of life, MS won’t help activate, yadda yadda.
Is it an HP laptop?
I recently had one come past my desk that someone had malwared to the hilt.
One thing that it had done was to corrupt (after removing) the OS licence, and I had a real bun fight trying to get it reapplied (the user had upgraded from 8 home to 8 pro and the pro key had been killed).
Where abouts in the world are you?
If you happened to live in Hawkes Bay, I can think of a couple of people who could help for the cost of a good bottle of wine…