How does pressing “R” helps my computer without replacing my hard disk?

How does pressing "R" help my computer without replacing my hard disk? I tried to replace the OS of my Intel Celeron computer from Windows XP service pack 2 into Windows Crystal XP 2007. I thought it was successful but it was not .
And now, I cannot return it to the 1st Windows XP so, it always reboots.
It shows an error message NTLDR missing press ctrl+alt+del to restart. I tried reinstalling and repairing the operating system but it says "press 'R'" and then it always goes to the recovery disk.
What's the problem with this?
