The cd should be able to install the operating system to that laptop, however, you must keep in mind whether that's a 16 bit or a 32 bit cd and whether the laptop runs better with one or the other.
Also if you can, backup any drivers on the laptop before you install the operating system, if you can't, that's not an issue, as you can download the drivers you need here. http://www.dell.com/support/drivers/us/e...
You can see which drivers aren't working by going to your Device Manager and from there can pick and choose which ones you need to get it started.