If this box was used in a library, it most likely was on a Windows NT/2000 network and logins were being handled by a Domain controller, which explains the "Press Ctrl-Alt-Delete" login panel.
An XP password reset disk was something a user created by means of the Control Panel User Account applet after logging in.
While I know such a disk works on stand-alone, or peer-to-peer networked XP machines, I don't know if it works on a machine set-up to access a Domain controller without the controller being present, even if you happened to have one. So the whole subject is moot.
If you only had an XP install CD and since you don't care what might be stored on the hard drive, I would have suggested to wipe the drive and re-install a new version of XP, set-up for stand-alone use. But lacking that, I'm not sure what to advise you at this point.

Perhaps what Bill has in his post might help then.

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Not sure if your aware but here's one other thing to consider. Microsoft's support for XP with service pack 3 will be ending in April 2014. I'm not sure if that makes a difference or not, but I thought I'd let you know.
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I suppose you might have already seen this MS KB article about logging in to XP when you forgot your password, but if not:
http://support.microsoft.com/kb/321305------
I suppose if all else fails; from About.com -
7 Free Windows Password Recovery Tools.