Ok, i accidently deleted some files using a freeware program, so i thought id do a restore. Restore was sucessful, but scf /scannow is asking for ther Windows XP CD, which i havent got. I only have a custom recovery CD.

SFC / scannow requires an original Windows CD, you can't use restore CD's I'm afraid.

What is currently wrong with the machine?

There seems to be a work around, but first check to see whether your recovery CD contains the folder i386. If not then I don't think it will help you.
http://www.updatexp.com/scannow-sfc.html

You can also try to direct the SFC / scannow to the i386 folder in youre windows folder. It might work.

Intersting you say that, when it asks for the CD, it means that it needs to copy the files to the i386 folder. Could you list how i would direct the command to my i386 directory. Im afraid that i cant do anything at the moment, as im at college.

When it askes for a file on the windows cd , just press "browse" and instead of navigating to youre windows cd , you navigate to C:\WINDOWS\i386.

@Zimbo, i have looked on my recovery media, and i do have the I386 Folder. All as i need now is instructions of how to copy the files to my system. Will this delete any of my installed programs and files?