Once it's downloaded, just run the executable, which will extract to a folder of your choice, then run the 'Setup.exe' file inside that folder.
As for finding out the DirectX version you are running, bring up a 'Run' command (WinKey + R), and type dxdiag.
It should give you a version number in there, but as you have XP on your netbook, it's most definitely going to be DirectX 9.0
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