I was given an used HTC desire, doesn't boot, how can I reinstall it?
clockworkmod is a custom recovery, so the device is probably rooted.

A 128 MB SDCard is as good as no SDCard at all, and probably cannot even hold a single image to flash. You might want to check for a bigger one, everything below 4 GB makes not much sense (make sure to buy nothing below class-4, class-6 is better, class-10 not really necessary). After that, check on CyanogenMod.COM for your device, and follow instructions there.

Before doing so, however: Have you tried to boot the device normally (just using the Power button)? It might even boot up normally. If not, you can execute the wipe data/factory reset item in the last screenshot, followed by reboot system now and see if that helps. If not, see above :)