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By the way, I do not have the CD with XP for this system and I do not have a backup disk. I guess I could make one if I knew how.
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Well, that pretty much says it. You need to "wipe" clean the drive then give the new owner the computer - a very generous offer, I might add! Let the new owner worry about buying their own,
legal license for the OS. Or there are plenty of free and very able Linux alternatives.
BTW, if you decide to make a backup copy and give it to this new owner without the original disks, then you become a distributor of illegally copied copyrighted materials. Don't break the law just to be nice.
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From a security standpoint, you should never give away hard drives that might have some of your personal data on them without thoroughly "wiping" the disk with a program designed to obliterate all traces of previously stored data.
Eraser works great.
Then, once he gets his own OS, or you find the originals, he can do a fresh install on a freshly purged and formatted drive.