I use DI7 with XP Pro and have done as you wish to. The difference being that I have an XP disk and not a restore disk, so not sure how it will work with your setup.
In one way your lucky in the fact that the clean image you require should disaster strike is already done for you, it's on a hidden partition of your hard drive. The restore CD gives you access to this.
If at some stage in the future your system crashes all you need do is use the disk and restore your system to the exact clean state it's in at the moment including XP operating system.
The only other programs are the ones you will be putting on from now and any applications + drivers. These you will have the CD's for.
Until someone can provide you with a better answer make sure you back up all your files/folders/photo's etc. to a second drive or burn them to a CD each week or immediately if very important. XP has a backup facility to do this task for you or you can do it manually through drag/drop-copy/paste or from windows explorer.