1.Clean your CD with a lint free cloth, also if you have any scratches on the CD try to clear that up as best as you can. if there are scratches and looks pretty bad...... your screwed not unless you have another windows disc that you could try.
2.Try that first hard drive in another computer to see if it works, if it does then maybe bios is not recognizing the HD correctly. if it does not work..... then thats a dead HD up for shooting practice in the back yard. now for your new HD there should be no problem at all just make sure you have the HD as first primary master and it works correctly on boot up you'll be alright