mountmgr.sys corrupted during xp reformat?

[ImPuLsE rXn]

im trying to reformat my friends dell becuase his harddrive is no longer bootable for some reason, he bought a new wd harddrive and i have his recovery cd- but whenever ig et into the windows setup, it loads all of the inintial files until mountmgr.sys and then it says "Mountmgr.sys is corrupt." at which point you can strike some keys to restart. Is his reinstall cd corrupt?