Possible HD problem?

Clarifications

If you can try to swap it out with another and see what you can get. Or, try to install it in another computer and transfer your files. The fact that your being told "operating system not found" indicates to me that the HDD has failed.

The blinking lights indicates that the processor is stuck in a loop. The keyboard is in the 300 block of diagnostics, right after the CPU and memory. Try unplugging the keyboard to se if that's what's blocking the sequence to complete it's start routine. A hard drive failure would say something like "Disk 0 failure or disk boot fail" The OS not found message is from the loading sequence read from the drive and the rudimentary DOS service needed to read from the hard drive/floppy/CD drive.

The Ultimate Boot CD which is free has testing utilities for HDD's on it so you can test the drive/s and work from there

http://tinyurl.com/3jnpy

Now as for the error message that you are getting before using anything it's a sign that the HDD is present but that it has no OS readable on it.

I'm not sure about that CD as it's not something that I've ever used but if the Hardware is all OK it could be a faulty Disc. Have you actually looked at the shiny side of the Disc to see if there is anything on it?

Col

try and get your money back.

http://www.spotmau.com/support/support.htm

As OH Smeg suggested UBCD runs rings around it. Don't worry about the shiny side dice it.
I've already been there and done that. I purchased it for my father inlaw who is getting on in years, thinking that it would make life easier for him. Big mistake.

Anyway that is my opinion.
Rob

I'll try your suggestions, and I'll let you know the outcome. Truly appreciate your advice.