Having to reinstall the applications that didn't come preinstalled on the machine is normal. The important thing is that your files are intact and will open normally once the applications are reinstalled.
Your dad's XP upgrade cd should work just fine. Do you have your product key code? It may be on a sticker on the back of the machine or the booklet that came with your machine. If you can't find it that way, let me know and we'll get it another way.