you got two options if you want to recover the data:
1- Call Microsoft and ask for direction as what they could do (I don't think very much, but I could be wrong)
2- Visit this web site:
http://nu2.nu/pebuilder/#screen and make your self a Windows PE boot CD (on another system that run Windows XP) the you can boot from the CD and recove the data and transfer it to another drive locally or a network drive (I know you have mentioned that you could not boot from the CD on your posting, I would think that you have a SCSI CD Rom, that's why, in which case you got to get an IDE drive)
Option number 3

, format and reinstall
cheers