HP 763n / Boot Sequence not found in SetUp

Hewitt-Packard 763n Computer.

Boot Sequence in Set-Up Utility not found.

I'm helping a friend try to reformat her hard drive and re-install Windows XP. She tried shutting down the computer with the XP Disc inside to try to boot off that disc...NADA.
She restarted by depressing/holding down the F1 key, got to her set up window, but she told me (over the phone) that she could not change anything.
Does anyone know why?

Another question is if she reformats her Hard drive, Will she have to download her onboard Audio/Video drivers or do they come with the XP software. Thank you!