Hi SC, welcome to NST.
On the
wiki page about using the recovery disk, is a prominent note.
IMPORTANT - You CANNOT use this disk to Install or Re-Install Vista. IT CONTAINS NO INSTALLATION FILES
The "Install now" button on the main screen will NOT work.
The disk only contains the recovery environment to fix a broken boot. It isn't a free copy of Vista.
Do you still have the OEM recovery partition on your PC which can be used to do a factory reset ?
If not, your only cost-free option is to borrow a Vista DVD from a friend. (any flavour - it doesn't matter, every version is on there, the key tells setup which version to install depending on which type was paid for)
Install Vista from scratch,
using the key from your PC not the one on the DVD.