Hi!
A couple of weeks ago my friend put a reformatted my laptop with Windows using his personal CD (not the CD that came with my laptop).
It worked just fine until popup notification came up at the start of windows (before logging in) saying that I had X amount of days to activate my windows. Then it asks me to activate now? I click yes. Logs me in..and then says that I am already activated and lets me move on with my life. So I didn't think much of it.
Skip to...NO more days left to activate windows. Click yes to activate..but this time..logs me off and thus a vicious cycle happens.
I'm not that computer savvy but...it's bothering me that I can't even log on to my own laptop anymore (minus Safe Mode).
I tried a system restore to a previous date but that didn't work.
Now I don't know what to do.
Is reformatting my laptop again the only way out?

I would reformat, it's not that hard. Just get the newspaper, or something else, and sit down and do it man.

I think when you reformatted your laptop, you are not activated XP. For activation of XP there need a 20ty digit key. If you do not have that key than reformatted is the only option of your problem. Formatting is not so hard. Just follow the instruction and reformatted your laptop.

You don't need to reformat. use the "Activate over the telephone" option and use your Product key (provided it's the same version, Pro not Home or vice versa)
type in the activation code.

And when the system asks you the questions about:
is this product pre installed (Yes it is)
installed on more than 1 computer ( No it isn't)
Installed on the same computer (Yes it is)

Type in the new activation code that will be read out to you

Say "Thank you" to the automated system and hang up.
Job Done.

I agree with chrishirst. You can also use a tool available from Microsoft to upgrade your serial number, you can then change it to the one you laptop has (on the label) and then try to activate it online.

you just need to call for for activation key...

YES, don't reformat or reinstall - Microsoft has a number you can call. Start the activation process then they will give you an 800 number to call on one of the screens. You can do it without talking to a person or with assistance. Make sure you have the key that came with your computer.

-kehf