I had no trouble doing it with the recovery DVD and the drivers I downloaded from the Sony site.
The only tricky thing was getting the camera working afterwards.
I did a clean install of Win XP Pro, then installed all the Sony drivers I had downloaded. Then I did installs for the Hotkey Utility and the Camera from the DVD. That took some trial&error; to get them installed in the right order. There may be someone here who can help with that part.
Then I had to do this fix to get the camera working:
1) Go to device manager (under system in the control panel)
2) At device manager, look under USB section. You should see 4 USB Root Hub.
3) Open up the 3rd one, under the second tab you should see Sony Communication VC10 as one of the entry in the hub. If you can’t see that, you may want to choose one of the other 4 root hub.
4) When you find the right root hub, go to the 4th tab and uncheck “allow power panel to shut down device”.
5) Hit OK or Apply.
6) Restart your computer.