<<The laptop originally came with Windows 7 noted by the sticker on it. It was given to me broken, so I cannot tell you if it was home, premium, ultimate, etc. Most likely home i would assume.>>
Since it is a laptop, the original license is for Win 7, not XP. Any attempt to install any version of Windows other than that which was originally installed...requires a valid license for that version.<<The windows XP sp2 CD i currently have is not an official microsoft copy. I lost my install cd ages ago so I downloaded an iso so I didn't have to pay for another product key.>>
If it's not a legal/official version of Windows...then you are attempting to install an illegal version of Windows. Along with the fact that such version is illegal, you may want to take note of the following.
Are Digital River's download links illegal for use by people... - Microsoft Answers - http://answers.microsoft.com/en-us/windows/forum/windows_7-windows_install/are-digital-rivers-download-links-illegal-for-use/9a121cdc-6c23-481a-bd5c-2753f2578423
Are Torrents Safe Info - http://www.infocarnivore.com/tag/are-torrents-safe/
As suggested...you need to obtain a legal version with license...of whatever version of Windows you want to install...and go forward from that. Before attempting to install any O/S, it's also a good idea to run the appropriate hard drive diagnostic...to rule out the possibility of useless efforts expended.
Since it's a laptop, I suggest that you consider contacting the manufacturer of said system concerning the acquisition of recovery/restore disks, since I believe that the cost involved may be less than that of purchasing a new, licensed version of Windows.
Quote from the forum rules: "No subject matter will be allowed whose purpose is to defeat existing copyright or security measures. If a user persists and/or the activity is obviously illegal the staff reserves the right to remove such content and/or ban the user. This would also mean encouraging the use or continued use of pirated software is not permitted, and subject to the same consequences."
This topic is now closed. If you have any questions about this, please communicate such via PM to me.