Ah, a common misinterpretation of Microsoft's options, Heather - you entered Recovery Console, and you don't want that.
At that point in the process instead of typing R press Enter to start Windows Setup [Repair is a mini version of installation]
=> To setup Windows XP now, press Enter.
Next comes the license agreement, you will then be presented with a list of installations to choose from to repair [usually just the one installation...]. Select your installation and type R. If Repair is not shown as an option then exit Setup, DO NOT "continue to install a fresh copy without repairing" or you will lose data and applications.
Setup will copy files etc and then reboot your computer. Don't boot again from the CD by pressing any key when the message appears, just wait a moment and your machine will restart.
Enable your firewall [ or windows firewall is sufficient at this time] and validate your XP.
Say how you get on.