Your friend has copied his installation disk for you and given you his product key. If he is still using his copy of XP Home, you can not load it to your PC. You will not be able to register or activate it unless it is a pirate copy.
I think you first need to go and buy your own copy of a Windows operating system.
If you have the only copy, he has uninstalled it from his PC and you have registered and activated it in your PC, please tell us the information Microsoft gave you when you rang them to activate.