Recovery disk stuck in endless reboot - sat. P35

Question

I'm just trying to reinstall winxp home to a newly installed hard drive after my old drive died.
Ok, here's system info
    model name:    Satellite P35-S611
    part #:        PSP 30U-20H001
Recovery disk info
    Toshiba
    Recovery and Applications / Drivers DVD
    Satellite P30 / P35 Series
    TK143/PMAE00127012
Recovery disk shrink wrap label info
    HRZYK000110 (v3)
    AMA400050011
    (TK143/PMAE00127012)
    Sat. P35 Recovery Package
    S26-00026/070-02405
{1} As per only instructions on the back of the recovery disk case; I power up while holding the "C" key.
{2} The disk boots a dos session and text pops up for a full system restore ( F1 to continue, F2 to cancel )
{3} I press F1.
{4} A text warning screen pops up about losing all data when formatting the hard drive ( C to continue, A to abort )
{5} I press C
{6} 2 or 3 seconds later my laptop reboots to the dos session in step {2}, there are no warnings or messages, just an endless loop of this "recovery" software asking me to press F1 and C to continue.
I have multiple *nix live cds and can partition and format this new drive to anything this recovery cd needs, but there is NO documentation about this rcovery disk other than power up while holding the "C" key.

Answer 1

Some more details about this UNSOLVED failure in the recovery discs code.
{step 2 screen is:}
Welcome to the Toshiba Recovery utility.
This process will restore the original default system install on your hard drive.
Note that the current contents of your hard drive will be erased and replaced by the default system install.  You should back up your system before continuing.
By selecting OK, you are accepting the terms of the Microsoft end-user license agreement that appears in the Windows License Agreement Setup Screen.
F1 = OK, F2 = Cancel
{step 3 I press F1}
{Breifly followed by:}
The recovery is in progress, please wait
{step 4 screen is:}
(ascii graphic of Xs spelling out "Warning")
Continuing with this process will erase the current contents of your hard disk drive and replace them with the original default system install.  To proceed:
1. Ensure that the recovery CD/DVD is in the CD/DVD drive.
2. Keep the CD/DVD in the drive until you are asked to remove it.
If you do not want to erase the contents of your hard isk drive then press 'A' to abort.
To continue press (C), To abort press (A)...[C,A}?
{and then it reboots and starts over again about 3 seconds after pressing "C"}
The new hard drive works perfectly; it is not the problem.  I can install and uninstall ubunto on it with zero problems.
I was also able to install / uninstall Windows2000pro from an actual real w2k install disc (not a crapfest recovery disc)
While running w2k I can put the Toshiba WinXPhome recovery DVD in the drive and it will autorun its GUI.
Pressing the about button on the recovery GUI pops up:
    Satellite P30, P35 Windows XP Home PIRAD DVD -v1.1
    Toshiba Recovery and Applications CD
    Version 1.1.1.26 Copyright (c) 1997-2002 Toshia America
The Recovery GUI gives the option of installing individual applications (NO, WinXP is not listed among the applications); or doing a complete system restore.
When complete restore is selected, a warning about data loss appears and it asks that a confirm button be pressed before pressing finish.
After these buttons arre pressed the Recovery GUI and W2K shut down and the system reboots into the text screen rebooting loop described above.
THE RECOVERY DISC FUNCTIONS AS A DISC
ITS THE CODE TOSHIBA WROTE TO THE RECOVERY DISK THAT IS BAD