If you do a full sys restore, it will wipe out all old data..
What you need to do is boot up on a CD first and try to repair the MBR (Master Boot Record)
Look here - 4th one down.. to download a Boot /repair CD image to burnto a CD
Read all instructions with it.
OR need to find someone who can loan you the WinXP CD . Or a copy of it. (Or download an ISO (burnable copy) to create one) It is the serial number that validates the Windows install. They don't have to give you the serial as you should have your own on a label under the notebook.
Actually the chances are not good for recovery while in the notebook.
You will have a better chance to recover files if you are able to remove the hard drive and install it aas a slave in another (desktop) PC (will come up as D or E drive
When you've finished recovering file, it will be easier to format the HD before putting it back in note book. If the Recovery partion is still intact, do not wipe it out as you can maybe still use it to reload windows.
Worst case - the HD read write heads are damaged and the drive is toast. That will mean no file recovered and replacing HD with new (or used) and reloading windows from scratch.