Product activation- so much for quick and easy...

Microsoft Windows XP

When I try to activate windows over the internet, when I click next it shows
the loading timer... and does nowt. It's not actually doing anything 'cause I
can select other options, and I can't use the phone for other reasons. Will I
have to start from scratch and install windows manually or is there another
way round?
Have you configured your dialer to automatically connect with and log
into your ISP?
Can you tell me how to do that in baby language? I'm terrible with computers.
I've got wireless, by the way.