Trouble installing Windows 7 on New HDD

I have a Sony Vaio VGN-fw139 notebook that I am trying to install a full version of 7 ultimate onto. The harddrive is brand new also. I get the message, "Operating System Not Found. press any key to continue."

I have looked through the bios and it is set to boot from optical drive 1st. For some reason it will not boot from the W7 disc.

The bios sees the new HDD and displays the correct date and time.

I have installed W7 on this very same notebook twice before with no problems.

Any thoughts on what is the problem?

Thanks in Advance.