Disk Boot Failure during OS installation.

Hey guys, recently built a custom computer, all new parts. Receiving DISK BOOT FAILURE during Install CD bootup. Have tried with Windows XP CD and Windows 7 CD.

Hardware:

MB - Gigabyte GA-EP45T-UD3P
CPU - Intel Core2 Quad Q8200
GFX - Nvidia GeForce GTX 260 Superclocked Edition
RAM - OCZ PC3 12800 Gold Series Triple Channel DDR3 (1 stick in at the moment)
PS - Raidmax RX-730SS
HDD - Seagate Barracuda 640G SATA
CDROM - Dynex Combo USB DVDROM

I have configured the boot sequences as follows: 1-USB-CDROM 1-Hard Disk 1-CDROM
2-Hard Disk 2-USB-CDROM 2-Hard Disk

....and so forth

The bios can see my Sata HDD, which I have tried setting to AHCI, RAID, and IDE.
I've also tried setting my SATA port to enable Native IDE mode and Legacy IDE mode.
I loaded optimized defaults and played around with it, still getting the DISK BOOT FAILURE.

I first thought it was my USB DVD/CDROM, however it runs my Gigabyte Energy Saver Utility CD but only gives me option to reboot, plus it gives me the option to choose USB-CDROM in BIOS. I have also tried a friend's Internal CDROM with same results.

So I then thought it could be my SATA, but it is showing it in my BIOS and I have tried different SATA ports.

I'm not really sure at the moment where to go from here, I spent 7 hours yesterday messing with this rig, this is my first build, and I'm becoming very agitated because I can't even pinpoint the problem.

Any help would be much appreciated.

UPDATE: I used Ultimate Boot CD, actually let me load this. I went into DiskWizard for Seagate and removed partition/formatted HDD. It then started asking for CD then press Spacebar! Finally somewhere... but then when I would insert my Windows XP CD it and hit SPCBR it would freeze like it was loading but never initiate. It then started giving me NTLDR errors, so I re-ran UBC and now im using KILLDISK to reformat the HDD. After that I will try using just WIN XP CD, if no success then I will try running it though DiskWizard.

No I have WinXP slipstreamed with SP3, and one with SP2, as well as Windows 7, not scratched. I am using a USB-DVDrom/Cdwriter but I have USB-CDROM enabled in bios and have reset to optimized quite a few times. It's definately not my Seagate HDD, I formatted and was able to access it as a secondary drive through a friend's computer.

I'm now at the point where my HDD is formatted, and it's giving me NTLDR error because of what I think was a failed format so I will try that again. Also using an old Maxtor HDD I get to where it says insert CD/DVD and when I do it boots up the CDROM and freezes.