Built a computer and error on second boot

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I am building a computer using the following:
IBM/Hitachi 80GB HD
Sony 1.44MB 3.5 inch floppy
EPoX motherboard
PC3200 256MB RAM
ATI Radeon 9600SE
AMD Athlon XP 2600+

And all went well in the installation and the BIOS configuration until I insterted my OS cd. It said "Non-system disk or disk error: Replace and strike any key when ready" I tried booting hard drive diagnostics from floppy and OS from CD, any ideas? Thanks for the help.
 
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Go into BIOS and set it so that the PC boots first from floppy, secondly from CD and thirdly from HD.
Reboot without floppy, but with the OS CD in (assuming it is a bootable one).
Follow the instructions on-screen.
 
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