Alrighty; I just played with fdisk and mkfs and stuff like that, figuring that at worse my computer still didn't work... ha ha. Anywho, after all that I then borrowed a friend's DVD drive (which is so bust up it doesn't even open without a LOT of force) and tried my WinXP disk again.
...
SETUP RAN! And is now formatting my hard drive to NTFS! I wish I knew whether it was the new DVD Drive or the random mkfs and fdisk'ing I did, but if this actually works and I can actually use my computer like a proper P.C this is going to be the best day of the year for me! Christmas won't/can't even compare!