Boot disk failure insert system disk

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A friend of mine had his hard drive crash, bought a new one got the bios set up but can't get to fdisk. The boot sequence is set to boot from CD-Rom drive then HDD. boot up stalls out with error boot disk failure insert system disk. Not sure what to do from here or how to get to fdisk to format the new hardrive. Any help would be greatly appreciated.
 
What OS is he trying to install? XP does not require getting to fdisk you can partition and format from the install GUI on booting from the XP disk. it sounds like either the optical drive is not working correctly or the XP disk is scratched, dirty, or damaged. make sure the disk is free of defects and clean. Also double check that the optical drive IS first boot device I have seen people think they changed it but forgot to save & Exit when they exited the bios.
 
He is using Mellenium. When we boot up it recognizes the HDD but then goes to boot disk failure. The MS disk seems to be in good working condition, no scratches or dust. Can't get it to boot off the disk before the error comes up.
 
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