Noah06,
Right now, your computer has a Volume Licensing edition of XP Pro installed (Line 7), and that installation was done with a now-blocked Volume Licensing Key (VLK) (Line 2). VLKs are blocked by Microsoft at the request of the original keyholder for such reasons as the key was lost, stolen, compromised, misused, or expired. Also, MS may have blocked the key if it notices a pattern of misuse, ie, more installations of XP using that key than authorized.
As a rule, VL editions of XP should not be sold to individual consumers. Businesses, schools and gov'ts normally use VL editions for flexibility in installing many computers.
This is why you were seeing the "software counterfeiting" messages on your computer, because the current installation of XP is an unauthorized installation.
The next step in the process is to look on the computer or with the materials you received with the computer to see if you have a Certificate of Authenticty (COA). If you have one, tell us about the COA. Tell us:
1. What edition of Windows XP is it for, Home, Pro, or Media Center?
2. Does it read "OEM Software" or "OEM Product" in black lettering?
3. Or, does it have the computer manufacturer's name in black lettering? I think we will find IBM.
4. DO NOT post the Product Key.
Not sure what to look for? Click here: http://www.microsoft.com/resources/howtotell/en/coa.mspx