Did your dvd come with a install disc or is this an HP pre-built that included all drivers and XP installed when new?
Is this a sata or ide drive?
It's a driver issue.
How about device manager --> unistall drivers
Restart pc and let Win7 install drivers.
Best bet is to enter whatever pc you have and go to HP site. http://welcome.hp.com/country/us/en/cs/home.html
I have the same drive as you, and mine wont even let me install win 7 ultimate without the driver using the DVD drive as the OS disk reader...HP doesnt have a firmware support for Win 7 so we r out of luck.. @Davcon the drive is IDE