This is what dh says:
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Get bootable Windows xp CD Rom
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Set PC up in bios (your friend will be able to do this) to boot from CD
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Follow on-screen prompts - it will ask if you want to do a repair install - choose to do a repair install.
Despite what your friend says there categorically is no password - has never been one. Windows xp allows you to set it up without a password and that is what dh did.
If repair installation doesn't work, another option is to choose recovery console (dh says you have to know what you are doing, ie., and don't take this personally - not a job for you!) Boot into the recovery console - but there is no password set (promise!) There is a useful site to help with this here
The virus has most likely corrupted the mbr - stuff about how to fix it is on that link.
If all else fails, rescuing data on hard drive should be simple - put HD in another PC, scan for viruses, and rescue data.
Basically - your friend needs to know what he is doing (dh says tactfully!) - dh says he really can't talk you through it step by step, he would need to be sitting in front of your PC.
Hope that helps a bit - that's all he has.
And if it doesn't, don't shoot me - I'm just the messenger and didn't understand a word of that.
Sorry to hear about further troubles with ah xx Off to bed now - have sore throat and am a poorly moo.