The best option for that kind of situation, is a USB install, you can find many on the internet and its legit since you use your serial.
Thats how Operating systems are going to be installed on new laptops.
That or an external drive as mentioned
Is there not a restore program? Have you tried loading in "safe mode"?
I am guessing it was preloaded with Windows so there is normally a partition with restore on it. whether or not your warranty covers it really depends on what the error is. If it is hardware failure and within warantee period then it is covered. If it is software problem then possibly not. Also depends if you took out an additional cover policy on it when you bought it.
Try to find out, return it to where you bought it
or call customer support.
another option is getting an external dvd-drive
or docking station, for future install problems
it'll be connected by usb-port,
and if xp still works, it'll recognize it(plug'n'play)
good luck
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