did you change your BIOS to boot from CD first? ...most often its set to boot from usb or hard drive...you would need to change to CD/DVD drive as first priority.
As for windows 7 being worth it? I think so. I had Vista 64 and never had any problems, windows 7 64 bit didnt change much for me...but I like it, and you will have access to more RAM with 7 vs. XP.
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