[Solved] Windows 7 Installation Keeps Repeating Itself

win 7 keeps repeating process of installation; w/o cd inserted "no boot device recognized" appears though WD Caviar Blue 320 GB HD is there. In DOS, no installations of Windows are recognized and attempts to rebuild MBR through CMD Prompt shows successful.
Only 2-3 sectors of HD test showed bad sectors of 150 or less...shouldn't prevent clean install?
Any suggestions would be great...I am up to 4 days on this one.
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Configuration Windows 7