1. MATCLI
http://www.google.com/search?&q=MATCLI finds it's something Compaq installed. Your choice what to do about it.
2. If the HP product will not install, that make this a warranty issue. You have posted in more than two forums and have replies. I've read a few, but no one stated the obvious. You have a defective product or CD and maybe it's best to return it as such.
3. About that XP Pro disc. A disk is NOT A LICENSE. And the XP license has TEETH! Some install a friends XP CD and in 28 days the system stops working because they didn't have a license.
There is a "free" XP CD floating about, but that one can't get security updates so it's not worth installing even if we don't talk about the license issues.
4. "she put in system restore disc and now some files are missing."
Time to reinstall the application that has those files.
Bob
tried to install an HP PSC 2175 kept getting error mrssage cycllic redundancy. called Hp gave her a generic driver but she could not print off internet only note pad. she put in system restore disc and now some files are missing. She never does her updates so I found an update for system restore and installed it. a funny popup Mat cli comes up? what is this? Now what do I do restore again? will I get files? Someone gave me an XP Pro disc, can I install this before I fix ME? Help

Chowhound
Comic Vine
GameFAQs
GameSpot
Giant Bomb
TechRepublic