I"m no linux expert, but I rescue windows pc's all the time. I'd suggest you do the following, since you have already rescued your data:

1) download an XP OEM iso file and reinstall xp using the license key on your sticker.

or

2) order a recovery CD from Acer. Some recovery CDs rewrite the recovery partitions, some don't. But the customer charge for them is under $30.

In any event, by copying off your partitions first, you did the important part, so you won't lose data. Good work on that!

PS the I/O errors worry me. I'm not as confident as you are that the HD is okay, but it might be. Do you have access to a copy of spinrite from grc.com? If not, I recommend it as a general purpose HD tool, regardless what OS you are supporting.