Sorry, I should have been a it more clear. To answer your questions:
1. I got past the BIOS screen, then the boot-screen would load, and soon afterwards I would get a bluescreen saying, "A fatal error occcured while attempting to initialize windows" The backup was a standard full-image made with the backup function in the system toold folder. It simply failed to load, even though I had used that same backup a few months earlier.
2. I did attempt to put in the default XP Pro CD my laptop came with, and after it had installed, I had the same problem as stated above, I never could get past the boot-screen (and it did not allow me to select any other options, such as the Recovery Console). I had to install the backup that came with my Dell, and that worked perfectly, no problems whatsoever.
3. Again, since I have a Dell, the BIOS comes with a nifty hardware analyzer. I've always known it to be very accurate (in the past I have had an HD failure, and the analyzer made that a fact right away). However I ran it and everything passed (HD, RAM, and the fan, which I kept a very close eye on in particular). It said the temp was 43C, which is always what I had known it to be.
4. Yep, as much as I like it, I won't be running it for awhile, I'll at least wait for an update.
5. Thanks for the help!