It asks for your Administrator's password. I guess you're using XP Home so by default its passwork is blank. Just press ENTER at its prompt.
To reinstall the whole system, instead of choosing Repair Option at its Setup menu screen, just press ENTER (for new installation option). On the next few screens, after XP Setup searchs and finds your OS, it will prompt you to choose either Repair or New installation. You can choose Repair option here. It won't require Administrator's password.
:smile: Good or Bad have no meaning at all, depends on what your point of view is.