"Tried putting it in"? How so? Did you boot it? If not you need to.
Set your BIOS to boot the CD drive prior to the hard drive then boot with the CD in the drive.
Press any key to boot CD when thus prompted.
The first thing you can try is choose the first "R" to open the Recovery Console.
Description of the Windows XP Recovery Console for advanced users
Here you can try a few things. I would try in this order rebooting between (not pressing any key to boot CD) to see if the issue is resolved:
FIXBOOT C:
FIXMBR C:
BOOTCFG /rebuild
CHKDSK C: /r
If none of the above work then yes you can reinstall XP as either a Repair or a Clean Install.
You will need a unique XP Product Key or know the key associated with that computer. You cannot use a key that is in use on any other computer.
There are good install guides here:
Michael Stevens Tech