And then i change no settings, exit bios, and then it automatically loads xp and works fine.

Why bios first?

Because, the Basic Input/Output System (BIOS) firmware on your motherboard needs to initialize things like your Random Access Memory (RAM), your Hard Disk Drives, Optics Drives, and various other things connected to the motherboard in your laptop. Without booting into BIOS, there would be nothing to organize the order of what launched first.

Also, your BIOS is pretty much the first thing to warn you if there's any hardware failure or interference.

Yep but why does it take me into the actual bios, where i have to use the arrow keys on keyboard and exit discsrd changes (just in case) and then once i exit from there it loads windows and starts normally

you could have a stuck f10 key or whatever default key it is to load bios.

Good thinking.
The keyboard on the laptop itself isnt used because it dont work, so a usb keyboard is used.

It is not my laptop, it is my uncles. I tell him he needs a new one, for the most part.