I see a bunch of misinformation here.
First, you do NOT have to install a BIOS. That is already in a chip on the mobo. And generally you would not need to update the BIOS before doing any other work either, unless you want to, or know that a newer BIOS is desirable.
I'm not surprised the new machine asked you to insert a valid bootable disk when it finished its POST - that is normal. BUT here is what must have happened. I see you were installing Win 7. Vista and Win 7 both have a "trick" during the Install designed to solve a problem for you in the future. The Install process will look for MORE than one HDD to use. IF it finds one (in your case, it did), it will install on that second HDD a small set of backup files, as well as installing the complete Windows OS on the first (C: ) drive. The plan is that, at some time in the future if the boot from the C: drive fails for some reason, it will go automatically to the second HDD, find the backup files, and restore them to the first HDD to repair it, then finish booting. Saves you a big headache! Nice of Microsoft to be so considerate. However, it also is set up so that the system checks on EVERY boot-up to be sure the second drive is there with those files, and it will NOT boot if it does not find them! That is why your machine now will not boot if you disconnect the WD 1TB unit.
To semi-defeat this precaution, you can re-do your first Install of the OS with ONLY ONE drive unit attached. In your case, you could re-do the Install with only the SSD attached, and you may have to tell it to wipe out all the old stuff on that drive to re-do the Install. When you force the Install to use only one drive, it still puts a set of backup files in place, but they are on the only drive in the system. That is not as safe as having them on a separate drive, but at least you are not trapped into keeping the second drive always there. AFTER the OS is installed and working, you shut down and connect the second (your WD 1 TB unit) drive. See below for how to prepare it for use.
By the way, your BIOS's SATA Port Mode settings should be AHCI (or SATA), and NOT IDE Emulation.
Now, it appears that the Windows Install process created on your WD unit a small (100 MB) Partition in which to place the backup files, and did not do any more preparation of the HDD. But you see, any new empty HDD needs to have two steps done on it before any OS can use it - Create a Partition, and then Format it. Actually, Win 7 has a good tool for this that combines both operations into one step to make it easy. It is in a utility called disk Management. Until that is done, Windows cannot "see" or use all that space on the 1 TB unit.
Since I think you will be re-doing the Install on the SSD and do NOT need the stuff on the WD HDD, you would be safe to re-do the Partition / Format operation on the HDD. You'd do this after reconnecting it after the OS is installed on the SSD. You would first Delete the existing small Partition on it, then do the other prep steps to use the entire 1 TB as one big Partition or "drive". For details on all this, read WyomingKnott's sticky at the top of the Storage ... General Discussion forum, here:
http://www.tomshardware.com/forum/265764-32-guide-insta...
Pay special attention to his Step 5.
Good luck! Let us know how it goes.