AOA110 clean install fails

I am attempting to recover an Acer AOA110 of a friend who downloaded some nasty. I managed to recover the machine to a very functional order with MBAM and a little some fiddling but found some corrupted files that refused every attempt at removal. Having decided that a clean install would be the simplest and safest solution I attached an external CD driver and proceeded to follow the somewhat basic instrutions using the recovery disks supplied with the machine that had not been unwrapped until this day.
The machine boots with no hesitation from the system CD provided (V6.1.11) and after installing some windows files, invites me to choose a UI language, asks if I would like to restore system from factory default, tells me this action will erase all data etc, and presents a CMD window titled Ry Tools Napp6 which awaits a system operation.
This is followed by a window with 'loading files' and progress bars but at this point the CD is ejected and a new window 'Hint - Next Disk' appears. At this prompt, I insert the supplied WinXPHomeSP3 disk which is briefly read by the cd and then ejected with an instant return to the 'Hint - Next Disk' window.

In inspecting the XP CD on another machine to verify that it is not obvioulsy damaged, (it is read with no hesitation) it is apparent that the folder MSDRV is quite empty. Could this be why the installtion process will not proceed or is there some other reason?
Any suggestions?

Thanks