Thanks for the help Steve, much appreciated.
The CD is called
ALREADY INSTALLED ON YOUR COMPUTER
Recovery media for Microsoft Windows XP Home Edition Product Service Pack 3
(Capitalization and line breaks as on the CD.)
So it sounds more like a restore CD.
It's one of the 3 CD's that came with the Mini, the other two are:
Drivers and Utilities, and
Almost sounds as if Dell didn't provide the CD to install the Windows OS - at least not from the point I'm at.
Going back to the original problem, the Kernel Panic.
The message that comes up is:
panic (cpu 0 caller0x1bf93108(: "Unsupported CPU": family = 0x6, model 0x1c, stepping = (etc., etc.)
Is there any way to recover from that?
Or is installing Windows XP the only option?