You need to set the CDrom as first Boot Device in the bios first. Then it should
work, If not MS has exe file you can download from their Web site that will make
a set of 6 boot Floppies. This allows older computers that won't boot to a CD to
install Windows.
If you purchased a upgrade XP CD, then you will need to get your Hands on a old Windows
install CD of some flavor. during the install XP will ask that you insert the old
CD to see if it qualifies for upgrade.
Also look for problem a with lack of Driver support. Your Laptop sounds old enough
that you may have trouble getting it to run with XP . You might visit the Laptop
Maker Web site to see if Drivers were ever offered for XP