Computer hardware is the collection of physical elements that constitutes a computer system. Computer hardware refers to the physical parts or components of a computer such as the monitor, mouse, keyboard, computer data storage, hard drive disk (HDD), system unit (graphic cards, sound cards, memory, motherboard and chips), etc. all of which are physical objects that can be touched. In contrast, software is instructions that can be stored and run by hardware.
Your PC (Personal Computer) is a system, consisting of many components. Some of those components, like Windows XP, and all your other programs, are software. The stuff you can actually see and touch, and would likely break if you threw it out a fifth-story window, is hardware.
Not everybody has exactly the same hardware. Those of you with notebook computers probably have most of the same components. Only in your case the components are all integrated into a single book-sized portable unit.