Bought a mac for my sons bday present of eBay :( it starts up in osx utilities screen, iv never seen the actual desktop(launch pad) I dnt know how to access the systemI know the basics for start up but says to delete files so I can dwnload the software?

AS above states the computer seems to run normally as far as turning it on, tabs & pages are fine. But I can't access the system to delete some files.. Which is what the 'error' keeps saying everytime I tr and download a helpful link/app or software.. The instal disc that seems to be stored on the comp says its mountain lion 10.8 install disk 'read only' & this is the only disc it gives me to select to startup.. I have the full software on USB as its very large.. So .. PLEASE TELL ME finally, 
HOW to ... Access comp files to delete required memory for software install?? If this is the best option..
HOW to ... Erase everything on computer & install 10.8 via USB?
And when or what enables me to see and use this computer correctly..ie, launch pad? Etc..
PLease reply back in 'normal terms' as I'm already exceeding my boundaries of imac knowledge

First: no, you cannot use someone else's install DVD unless it is a retail version; all others are machine specific. It will not work and would be illegal.
Is this what you bought?
http://www.everymac.com/systems/apple/imac/specs/imac_cd_2.0_20.html
IF that is correct, then you are not on 10.8 because the highest OS it can go to would be 10.6
So, you'd either need the original install disks (preferred) or buy a retail Snow Leopard (10.6) - that is as high as you can go with that machine. And, your maximum RAM is 2 GB, so you couldn't go higher with the OS because of that either because it would not run well on 2 GB.
If you do get 10.6, then I'd suggest increasing the RAM to the max. of 2 GB.
If this is not the machine you got (maybe the seller just used any old box), then I'd suggest taking it to an Apple store/Genius Bar to have them sort out how to get out of this mess.

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