well if all else fails try this.... have the computer boot from the cd, at the options menu goto dos promt.
once there, type in fdisk , when it asks you if you want to use full capacity of the hhd put in y . then right after that it should go to the options to make a partition on the hhd, choose wich one you want.
after you make a partition it will ask you if you want to make it active. a partition must be set to active to boot an operating system. once that's done
exit out back to dos promt, then type format :C , it should then format it for you, and once that's done, exit out, and reboot, so that the win cd boots, then reinstall from the cd.