You got what you paid for (eMachines are cheap), and that is not a real XP
CD.  Of course, they probably forgot to mention that fine point to you
before bought it.

Specifically, your PC has an OEM license, meaning that it is only good on
the hardware you bought.  You can not transfer it to another PC and you can
not do major upgrades, like a new motherboard.  You may also not be able to
do a "repair" installation.  But, you probably can do a restore, but that
means (1) automatically formating the hard drive and losing everything on
it, then (2) installing an image of the PC as they shipped it to you.

If you prefer to avoid the prospect of losing everything on the PC, then get
some good backup software and get it fast.  Get something that can write a
disk image to an external disk (USB, firewire), an use it regularly.  Also,
occassionally, write a backup to external disk, then copy it to CDs or DVDs.
Any good backup software will give you the option to make an image in
bite-sized pieces.

I advise against backing up directly to CD or DVD, as one little glitch and
the image will not restore.  instead, when you manually copy to optical
media, you can usually request a "verification", to assure that the copy is
100% correct.  Easy CD Creator and Nero both can do this.

I recommend Acronis True Image, but Norton GHOST is a fair alternative.

Hi,

There is nothing that states that the manufacturer needs to give you a
regular XP CD. What they have given you is an image disk that contains WinXP
and all of the supplied programs. This will restore the system to factory
state, they aren't giving you an option to install only the OS. You will
likely find the WinXP system files under an I386 folder on the hard drive in
case you need them.

Well, not exactly, it depends on what you wish to do.  Many manufacturers
today provide a restore CD which is as much a convenience for them as it is
a money saver as well.  The restore CD has the advantage of putting the
system back in the condition it was when you purchased it.  However, this
means it essentially wipes the drive and you start over.

Any applications you've added must be reinstalled but that's the same even
if you have an actual XP CD and you must have a backup of your data or you
lose that as well.  What she has told you is there is no repair function.
If things happen as you describe, your only option is to use the restore CD
to restore the system to the condition it was right out of the box.

As to what happens if you have to replace the hard drive, I'm not completely
sure how this would work and it may vary with system manufacturer as some
system manufacturer's might require you to replace the hard drive through
them in order for the restore CD to work.  That's something I think you need
to question them about.  In other words, if you replaced the hard drive with
a hard drive from some retailer, would the restore CD work as you expect or
do you have to purchase the new hard drive through eMachines.  You see, some
such CDs are BIOS locked and any change of internal hardware might prevent
the CD from properly restoring.

Nonetheless, what you are seeing is relatively standard, especially on lower
priced systems.  Unfortunately, many users are getting burned with this,
yours is not the first complaint or question we've seen on this subject.  I
would always advise any person buying a new computer to make sure an actual
CD of the OS is included, one which is identical to the retail version and
provides all the options of the retail version.  Unfortunately, when I see
such questions in newsgroups, it's always after the fact.

You might be able to purchase an actual XP CD through eMachines at a reduced
price, you might want to ask them about that and understand, when you
purchased your system, you didn't pay for a full retail version of XP, you
paid a licensing fee at a very reduced price over the cost of an actual
retail version.  What you have, is an all or nothing solution.  It saves the
manufacturer on support costs because if you call with a problem they just
tell you to put the restore CD in the drive and run their restore routine.
Unfortunately, that's not a fix, that wipes the drive and you start over.
Even if you had an actual XP CD I would still recommend in the strongest
possible terms that you be well backed up.  However, an actual XP CD also
includes the ability to do a repair install as well as run a number of
repair options from the recovery console none of which are included on this
restore CD.

OEM vendors are required by their agreement with Microsoft to
give you a means of reinstalling, should it be necessary. They
can do this in one of three ways:

1. An OEM copy of Windows

2. A restore CD

3. A hidden partition on your drive, with restore information.

If you don't have 1 or 2, you should have 3, but you should
contact your vendor to find out.

Personally, I find both 2 and 3 unacceptable, and would never
choose to buy a computer that came with an operating system
unless I got a complete generic installation CD for that
operating system.

She's correct. That's the purpose of a restore CD. It lets you
load Windows to factory-installed condition. It's not an
installation CD with all the regular options, but it you can do
what you ask.

Thank you Bob, Rick & Michael, for the information.  It is, of course,
too late for me to do much about this now, but I will add this to the
list of mistakes that I will not make again (I hope!).  Thanks.

    Legally, the OEM has met it's contractual obligation to Microsoft
by providing a means of returning the PC to its ex-factory state,
whether it's a Recovery CD or a Recovery Partition.  They are not
legally obliged to provide a true installation CD as part of the sale.
Reputable, customer-service aware OEMs, like Dell, MPC, and Gateway, do
provide a full OEM installation CD, that does permit custom
installations and repairs.  Many uncaring OEMs, especially those who
sell their computers through department stores and chain outlets, such
as Compaq, HP, eMachines, and Sony, however, in an effort to save
pennies and reduce their support costs by having to hire support people
that can only say "Boot from the Recovery CD to return your PC to its
original condition," provide only a CD bearing a disk image of the hard
drive as it left the factory.  These Recovery/Restore CDs cannot perform
normal installations, nor can they be used to do any sort of customizations.

    Essentially, it boils down to "You get what you pay for."