No disks because repair facility on hidden partition on Hard drive.
Its important to burn the backup disks on a new machine in case of hard drive failure.
Windows hasn't installed correctly because of bad sectors on the drive predicted by SMART.
Replace the drive
Borrow or burn a Windows DVD (Vista?) and install using the windows key off the sticker on the laptop. (bet that's missing or badly worn aswell)
If your lucky you may be able to clone the hidden partition off the old drive onto the new drive using another machine and then invoke the factory reset when fitted into the laptop.