It's also possible your on board network connection has gone bad. There are a couple ways I can think of to check this.
One is to download and create a Linux Live CD like Puppy Linux. See the instructions here for where to get it and how to create the CD: http://www.geekstogo...21#entry1197721
Another is UBCD4WIN through I'm not sure that will work with a Dell Recovery CD/DVD, though I do remember seeing some posts about how to do so. Direction's here on how to build it: http://www.ubcd4win.com/howto.htm
Hmm, seems to me the Dell Recovery CD supports two recovery methods, Repair (install over existing XP without format, which is the default) and Clean (you select Advanced and this formats the drive first so you need to save all your data before doing this). If so, you could also try a Repair install. What is the model number of your XPS laptop? The Users Guide should tell you how to use the recovery disc and the options available.