with the compaq installations ive used i had to run it in dos
it would restore the computer to the same state as the original

all the os and files are re-installed using a program similar to ghost or backup partition
i recall that you didnt have to run windows setup
all the files extracted and upon reboot everything was installed and it prompted for user name and cd-key
only took 5 mins or so

i am not a fan of compaq and dont know if the routine has changed

good luck

sorry for the useless info

cheers
eggead