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Solve : System disk failure?

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Hi...
I'm trying to format my hard drive and reinstall WinXP home edition.(I used WinXP Pro).
I've done this many times and never had a problem in the past but this time when i put Windows XP CD in the cd-rom i get that message-System disk FAILURE INSERT system disk and press enter-.
i chance the sequence of booting in my BIOS, so the cd-rom is first but nothing happend.
So, i cannot format my hard drive at all.
Just to MENTION, hard drive and cd-rom is working properly.

Any ideas please???
How do you know the hard drive is working properly? Its spinning up and being detected at POST aren't proof of FULL functionality.

Are you prompted to boot from the CD?



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