If you have a Restore CD that came with the computer you will likely have to
ask the manufacturer of that "XP Recovery CD" your question. Different
manufacturer's create different kinds of recovery or restore CDs. Some will
completely overwrite your existing data and return the system to the state
it was in at time of purchase. Other such CDs give options to either do a
full restore or enable you to do a Repair Install. A true Microsoft Retail
version of Windows XP has the ability to do a "Repair" of your current
Windows setup, if it finds one. A Repair Install, if done correctly, can
bring a system back to a working state while retaining all data and
installed programs. A Repair Install will remove past System Restore Points
and require you to reinstall Windows Update files but other data should be
OK. While generally successful one should always backup important data
before they attempt a Repair Install.

Because different manufacturer's use different recovery styles we can't
answer your question accurately.

If the source of the problem was an XP system file or registry problem,
maybe.  Otherwise, no.