Problem with new built pc.

Hey guys I recently bought a xfx8200 mobo/cpu combo 4600 amd comp. I added 2 gb corsair 800mhz memory, and used my older ide 160gb 7200rpm seagate hd, with a ide liteon dvd burner/rom. I run into serveral problems, first off my dvd rom will not detect at all under master/slave nothing and jumpers are set correctly. It displays not detected ATAPI INCOMPATIBILITY. Keep in mind this mobo has one ide and Im using hd as master and dvd rom as slave. 2ndly my hd displays insert booting device and hit a key, that could be where I had dual hd's at one time and booting sector is wacked.. Anyhow I've tried an older liteon cdrom and it does dectect.. ODD, but I can't get my xp disc or any other disc to boot at start up so I can reformat that messed up hd. In the bios I've even tried making cd rom that is detected as first booting device but still it will not boot no disc. I'm at a loss for words and i'm really bothered I can't get a simple pc with normal know how to get this working. Any advice would be greatly appreciated.. Thanks.