LOL, most times those recovery CD's don't work. OK, I've never heard of hitting F8 to get to the System Recovery screen. Normally hitting F8 repeatedly after you hit the power button gets you into SAFE MODE or some other options for booting. I would remove the CD from the cd drive and turn off the computer, then turn it on and immediately hit F8 until you see SAFE MODE. Take the Safe Mode option. Let it boot up. Safe mode will look different than normal windows. The icons will be bigger and the screen darker, but that's normal. Once safe mode is up click Start/Program/Accessories/System Tools/System Restore. Run System Restore and select a restore point (date and time) before you started having a problem. Don't worry, system restore does not destroy your data, documents, music, pictures, videos or programs.
System Recovery DELETES EVERYTHING and sets your computer back to when it was first purchased. If you must run System Recovery F8 is not the key you should be pressing.
I found the info below by putting "Alienware PC Systems M7700 System Recovery" in a google search. Sounds like you bought yourself a piece of trash.
25. System Restore And Recovery Is Not For Wimps
The system restore
process for the Alienware Aurora M7700 is definitely not for beginners.
For one thing, the process doesn't fire off automatically as promised
(at least that's what we read on the label affixed to the recovery CD
included with the unit). Instead, system
restore involves a complete Windows XP Home reinstall "from scratch."
Likewise, the drivers don't reside on the Master CD as described in the
documentation. Rather, they're located on the Utility CD. During the
driver installation phase, it's irritating to get no progress report on
individual drivers, perhaps by way of a simple progress bar. Also
irksome, the system reboots automatically after the installation of each
individual driver. Finally, those who want to succeed at restoring the
M7700 back to full operability better know what a disk partition is and
understand that the RAID driver must be installed from a diskette.