Of course this would erase any and all contents of the drive. If things don't work out, you may need to re-partition the HD and reinstall fresh/clean. Alternately, you may want to use an OEM XP Home Edition Installer and choose the 2nd 'Repair' option. If your laptop came with a recovery CD, try using that instead of the eRecovery ALT/F10. Chances are that the recovery files are saved in your 2nd partition D. The message 'destination: \\harddisk0\partition2' indicates that your single HD has been set to 2 partitions. The original hard drive installed is 40Gb. Sounds like a problem with your hard drive.