XPS M1530 seemingly dead. PLEASE HELP!

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Hello, I have a Dell XPS M1530 Laptop running Windows Vista with all the latest updates. A few months back I would occasionally get BSOD which I assumed was related to my laptop getting too hot. I purchased a laptop cooler(no fans, just a plastic stand with large holes so the laptop can breathe) and that seemingly solved the problem. A couple weeks later I experienced BSOD again and I ran some tests and scheduled a disk check. I restarted the computer and during the disk check I once again got BSOD. After that, the computer restarted itself and it stopped at the Windows Vista loading screen(the screen with the little green bars) except it did not say Windows Vista. It just had the green bars moving back and forth at the bottom. I left it there for about 10 minutes and still nothing. About 15 tries later it loaded onto the login screen, before it turned off again. Ever since I could not get it on. I decided that the hard drive had bad sectors and bought a 500GB Western Digital HDD, brand new. I have a Win7 installation disc which I inserted into the CD drive.

I keep getting an error saying "No bootable devices--strike F1 to retry boot, F2 for setup and F5 for diagnostics". I went into the BIOS and changed the boot sequence to CD Drive and still nothing. I installed Win7 on 2 USB sticks using unetbootin and inserted the sticks into all USB ports on the laptop, but I can't get past the first screen. It says "default" and when I select it, nothing happens. There is a countdown timer counting down from 10 before it automatically selects, but nothing happens. Its in an infinite loop. I don't know what to do.. Please help. This is as far as my current computer knowledge can take me. I have purchased a new HDD, but the laptop will not read the Win7 installation CD. I tried it on 3 other computers. The disc is fine.
 
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