The Windows XP disc "wouldn't let him" reinstall XP? I don't think I've ever heard of that before.
Without details, it's difficult to diagnose the problem. I would recommend clean installing Windows XP.
If your friend needs to access files to back them up, search the net for the latest version of Knoppix. Knoppix is a version of Linux that will run from CD (no installation required). Burn it onto a CD and put it in the computer. Once Knoppix is loaded, your friend will be able to backup all the files that he needs to keep. Google is your friend in this department.
Once he's done backing up tell him to perform a clean install.
Put the XP CD into a CD-ROM drive and reboot. Boot from the CD.
When Windows Setup loads, press "Enter" to Continue Setup.
Press F8 to agree to the Microsoft EULA.
Highlight the system partition (usually the first one in the listing) and press D to delete the partition.
This will delete all files on the system partition. Make sure that everything that he needs is backed up.
Press L to confirm deleting the partition.
Press Enter to setup Windows on the newly created Unpartitioned space.
Select "Format the partition using the NTFS file system" and press Enter.
From here on, just input all the necessary information (Name, Organization, CD key, etc) and click Next. This will give your friend a completely clean install of Windows. Have him install his anti-virus
immediately before he does anything on the internet (even Windows Update). Even better, tell him to physically unplug his computer from the internet. When the anti-virus is installed, he can reconnect and update the definitions.
From then on, have him follow the instructions located
here.
Hope this helps.
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