To answer the question of whether Dell includes XP on CD, Yes they do! It's labeled as Operating System Reinstallation CD
Microsoft Windows Home Edition. It doesn't contain any other crap, Just XP home. And yes it will work on PC's other than Dell ( It did for me anyway )
:)RossMan... I would skip the modem, But I would upgrade the CD-RW. The information from the link you gave, Lists your modem as win xp compatible. In my opinion, it should be fine.
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