Hi There Cheryl,
I have been following your thread here and would have made some posts on your problems, but since Bradley had picked up the baton for you I did not want to interfere, because sometimes that can just make things more confusing.
If you want some more info on XP Black Copy go here
http://en.wikipedia.org/wiki/Windows_Genuine_Advantageand have a read (the para on China will make you aware of why it is called XP Black).
Before you rush out to buy a Genuine copy of Windows 7,don't bother with Vista or XP (convince neighbour!!) can you not possibly borrow an XP OS CD from a friend maybe? If so you can use this to install the XP OS providing that you have the C.O.A.(Certificate Of Authority), this comes as a series of letters and digits and you will find it on a label that is stuck on the side of your neighbours' PC in this form:XXXXX-XXXXX-~XXXXX-XXXXX-XXXXX. Install XP from your borrowed CD and enter this number when requested, and you will be good to go. If you cannot borrow one then its a new OS.
If you want any info on Win ME just shout out. Since you seem to have a duff Boot Floppy/CD, you can make a new one from within Win ME.
Cheers HTH,
ticker