Can't boot Toshiba Satellite L45-S4687

I just bought L45 off the street pretty cheap, brought it home and found that it's pretty buggy. Rather than trying to fix every problem one by one I decided to reformat the drive and install new OS. I had a spare XP Pro copy.

So, I went to BIOS, switched boot order to CD drive, inserted OS CD and rebooted. Everything was going as planned until it installed all OS files from CD and rebooted itself. Now it goes to the beginning screen (where it shows Press F2 and Press F12) and hangs there. If I press F2, the message changes to Please Wait and it doesn't go anywhere. If I press F12 it say Entering boot device selection menu... and doesn't go anywhere.

I tried it with and without OS CD in the drive, nothing! I turned it off, removed the battery, waited for 2 min, inserted back, turned on - same thing.

It looks like BIOS doesn't exist. I burned ISO CD and tried to upgrade BIOS, but it locks up at exactly same spot. Upon power up CD ROM starts spinning, for 3-4 sec, then shuts down and nothing happens.

Please help.