Can't install windows, computer freezes at "press any key to boot from CD/DVD"

Hello everyone, wasn't really sure where to post this but since I'm trying to install windows 7 here I am. A while back my hard drive died, it said a partition was corrupt. I was having problems with the computer locking up during the recovery console at the time. So I bought a new hard drive and plugged it in, all I got was a black screen with a flashing cursor, I tried installing windows 7 on it with a retail disc and it locks up at the "press any key to boot from cd or dvd" screen. When that didnt work I placed the hard drive in another computer that I'm borrowing and it installed just fine, so I reformatted it and put it back in my computer, along with the optical drive from the loaner comp. just to make sure it wasn't my optical drive failing. Still the same thing. Ive tried installing windows xp on it, locks up on a blue screen that says windows xp install and nothing else. Ive made sure all the cables are connected. Ive tested the psu with a multimeter and get the correct voltages out of it. I tried running memtest86+ and it freezes it at test 7, and when I tested I used one stick of the two ram sticks that I have. when I go into bios and mess with any of the settings it locks up when I try to save and exit. Ive tried resetting the cmos that didnt help the problem. Ive tried setting the cd drive to boot in the boot option screen, that doesnt seem to do anything to fix it. Ive taken the ram out and started the computer to see if I get a beep code from the motherboard, I did so I put it back in. Same with the CMOS battery. If anyone has any ideas what the issue could be please let me know, Ive already spent somewhere toward 20 hours this weekend on this problem its driving me nuts! Any help would be greatly appreciated, Thanks!


System info:

http://h10025.www1.hp.com/ewfrf/wc/document?docname=c00...

is all stock except for the psu and the new hard drive, the new hard drive is,

http://www.newegg.com/Product/Product.aspx?Item=N82E168...


Also if anyone would be available to skype or yahoo messenger with me to work through this problem that would be great!

Also started having a problem where the monitor goes blank, the fans stop turning in the case and only the light over the power button switch is on, I tap the side of the psu and it starts again.
 
All stock except the psu ? You mean it's failed before? Looks like it's failed again then....any time some component fails twice is the time to start looking for why ?......
 
I may be wrong, But it maybe the motherboard. You could also try swapping out. The memory. It can sometimes cause these problems
 
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