Can not boot CD/DVD

Here are the issues: 1) Can not boot from a CD or DVD. 2) F12 - boot menu does not work and freezes PC. 3) Win 7 does not recogonize HDD in disk management.
This is a G31M-E2SL rev.1x board and I have updated to BIOS version F10 along with reset CMOS. I have entered setup by pressing [del] key and choose boot order CD, HDD, USB-FDD. I power on with a CD in the drive and everything detects, I am prompted to "press any key to boot CD/DVD", but this does nothing - Win 7 boots anyway. If I unplug the HDD upon startup then CD will boot, but then Win setup can not find HDD. So, at least this proves CD drive and disc could boot if BIOS was right.
I am only trying to upgrade from Win 7 RC to retail. If I run the disk from power up, will not even boot. If I run it from the desktop, then the installer can not find HDD and asks for device drivers to be installed. I have accessed the disk management through administrative tools and never see a Hard Drive.
Thanks everyone...
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