Hmm to me Winston that looks like you might still be on the Floppy.
It may be as Orac says. You can't see the CD as the PC does not know how to access it.
How old is your PC? If it's only a few years old it is quite likely that you can set it to start directly form the CD as Orac says.
Reboot your PC and go into the BIOS (normally done by hitting the DEL key as it starts booting.)
One of the menu selections will be Boot Order and will give a variety of options such as Floppy, HDD, CD - HDD, Floppy, CD etc. Select one with CD as the first choice. Save and exit. *Don't change anything else!*
Insert the XP CD in the drive and reboot. Follow the XP prompts from the screen.
And it is a VERY good point about a standard format not fixing viri - you may need to do all of this again if you have not got rid of them - still practice makes perfect
Oh and scan all the files you saved to CD before you open them!