NEW ACER ONE NETBOOK WILL NOT BOOT UP

Question

Won this new netbook at christmas party. Turned it on but it gets stuck at blue screen saying 'Please wait while Windows is starting up......' after Windows XP logo showed for a few seconds.Get's stuck at this screen for hours and will not get past it. Plugged in an external dvd writer that came with it (it has no internal cd drive) and tried starting it with 'system disc' and also with 'Windows XP Home disc (both came with netbook) but cannot get past the above screen.Any help would be appreciated - I have no receipt for warranty!